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The man, who has not been identified, was arrested on Sunday by the security officials at the Bandaranaike International Airport (BIA), Daily Mirror Lanka reported on Monday.
He came to Sri Lanka for business.
Following a search of his suitcase, the security officials found 117,000 Canadian dollars and 19,000 Euros worth over Rs 40 million, the report added.
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He was to board an Indigo Flight bound for Chennai.
The passenger and his consignment of foreign currency were handed over to the Customs officials at the Katunayake Airport for further investigations.
The foreign currency had been confiscated while the passenger was ordered to pay a fine of Rs. 10,000.