World record wicket taker Muttiah Muralitharan has been named in a 16-man squad to tour Australia this month after threatening to withdraw when Australian Prime Minister John Howard questioned his action.

Muralitharan, 32, who has taken 527 wickets in 90 Tests, has been banned from bowling his doosra, or leg spinner, by the International Cricket Council (ICC).

He was called throwing by Australian umpires during tours in 1995-96 and 1998-99.

"We have gone on the basis that he is available for the tour but if he decides not to go we won't be adding any replacements," said chairman of selectors Ashantha de Silva.

Marvan Atapattu has been confirmed as captain for the two-Test tour, as well as the Asia Cup and the subsequent tour of South Africa.

Middle order batsman Russel Arnold and wicketkeeper Romesh Kaluwitharana have been recalled after missing the recent Test series against Zimbabwe.

Wicketkeeper Prasanna Jayawardene and uncapped batsmen Saman Jayantha and Thilina Kandamby have been dropped.

Uncapped pace bowler 20-year-old Lasith Malinga has been selected for his first tour ahead of Nuwan Kulasekera who toured Zimbabwe.

Sri Lanka start their tour with a warm-up game against a Northern Territory Chief Minister's XI on June 24 before Tests in Darwin and Cairns.

Sri Lanka: Marvan Atapattu (captain), Mahela Jayawardene, (vice-captain), Sanath Jayasuriya, Kumar Sangakkara, Muttiah Muralitharan, Chaminda Vaas, Upul Chandana, Nuwan Zoysa, Dilhara Fernando, Thilan Samaraweera, Lasith Malinga, Rangana Herath, Romesh Kaluwitharana, Russel Arnold, Farveez Maharoof.