The 45-year-old was detained by customs officials at Colombo airport on Sunday after he was seen seemingly struggling to walk properly while 'appearing to be in pain'.
An inspection found that the suspect was carrying 904.77 grams - 2.2lbs - of gold in the form of plates and chains, worth almost £21,800.
The 45-year-old had checked in for a flight heading to India when airport security staff noticed 'suspicious movements', customs spokesman Sunil Jayarathne said.
'He was called for a thorough screening after customs officers noticed him walking with difficulty and appearing to be in pain,' Jayaratne said.
He said a close examination revealed the gold wrapped in black plastic sheets and hidden in the man's rectum.
Among the 904 grams of gold recovered were seven yellow 'biscuits' and six chains. The haul was valued at 4.5 million rupees (£21,787).
The gold was wrapped in plastic bags inserted in to his rectum.
'This is not the first such detection and this is a common method of smuggling.'
Jayaratne said the contraband was seized and the man fined 100,000 rupees - about £484 - adding that officials believe the suspect had been a a courier for an organised smuggling ring.
Smuggling is usually carried out as part of money-laundering schemes or to transfer proceeds from drug sales, Jayaratne said.
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