When time was called on the match in Galle on Saturday, England had battled to 251-6 thanks to a battling 118 from Alistair Cook. But despite failing to force victory in the match, Sri Lanka took the series 1-0 and moved up to third place in the rankings.
South Africa replaced England in second position ahead of its Test series with the West Indies, which starts in Port Elizabeth on Wednesday.
India stayed fourth but will be hoping to improve on that position as its four-Test series with Australia also gets going on Wednesday in Melbourne.
Australia remain out by themselves at the top with 143 ratings points. In fact, even if Australia were to lose the upcoming series with India 4-0, it would still lead Anil Kumble's team by 10 points.
ICC Test Championship rankings (as of December 22)
1 Australia 143 points
2 South Africa 109
3 Sri Lanka 109
4 India 109
5 England 107
6 Pakistan 94
7 New Zealand 91
8 West Indies 72
9 Bangladesh 4