New Zealand, which dominated the drawn first Test in Colombo, had been looking for their first series win in Sri Lanka in 20 years when the final match of the two-Test series was to have started in the hill town of Kandy.
Match umpire D.J. Harper said the wicket was playable but the outfield was not after days of intermittent rain.
"We are dealing with international cricket here and we couldn't even contemplate playing club cricket on this," he said.
The outfield was likely to dry out during the day, but forecasts of rain again during the evening meant play may be cancelled again or delayed as well on day two.
New Zealand captain Stephen Fleming dominated the first Test with a Test-best 274 not out in the first innings followed by 69 not out in the second innings.
After the second Test, the two sides will be joined by Pakistan for a one-day triangular series.
