The Press Trust of India, a news agency, said no reason was given for cancelling the Secretary-level talks and no new dates have been set.
The two countries were expected to discuss ways to strengthen defence ties and also decide on future military exercises.
The report said Tamil parties, DMK which is an ally of the ruling coalition has been criticising the government for training military personnel.
Tamil parties have also called upon the central government to vote against Sri Lanka at a upcoming UN resolution brought by the US.
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The US has asked Sri Lanka to implement an action plan giving effect to recommendations of a committee that examined a 30-year civil war and asked Sri Lanka to improve human rights, and freedom of expression.
Reports have also said that India may vote against Sri Lanka, provided it agrees with the wording of the resolution.