Sri Lanka's government has faced heavy criticism after photographs obtained by Britain's Channel 4 suggested that 12-year-old Balachandran, son of Tamil Tiger leader Velupillai Prabakaran, was murdered and not killed in crossfire during the chaotic end of the island's three-decade war.
In a statement, Tamil Nadu chief minister J. Jayalalithaa, who has earlier been vocal against the country's government for the alleged atrocities, termed the incident as "unforgivable and huge violations".
She said her government had written to the Asian Athletics Association in Singapore asking them to stop the Sri Lankan team from participating as it would hurt the "sentiments" of the people in Tamil Nadu.
"As long as I am in power, the Sri Lankans will not be allowed to participate in the Games and the Tamil Nadu government will not participate in conducting this event," she said, adding that she had received no response from the AAA.
The third leg of the Asian Grand Prix and the AAA Congress was also scheduled to be held in Chennai. The association was not available for comments.