The Iranian ship, which is part of the country's navy, was near or within Sri Lankan territorial waters on Thursday afternoon.
Sri Lankan President Anura Kumara Dissanayake announced that 208 crew members on board will be evacuated due to fears of an attack on the ship.
Brought to port
The warship is to be taken to the port of Trincomalee to be protected from attack.
Anura Kumara Dissanayake's decision came after advisers met to consider a request from Iran to allow the warship to enter Sri Lankan territorial waters. Iran fears that otherwise the ship will suffer the same fate as the IRIS Dena.
The warship IRIS Dena was on its way from a naval display in India when it was hit by a torpedo attack off Sri Lanka, AP reported, citing Indian authorities.
Sunk by torpedo
A US submarine sank an Iranian naval vessel that it believed was safe in international waters. Instead, it was sunk by a torpedo, US Defense Secretary Pete Hegseth confirmed at the Pentagon on Wednesday.
The IRIS Dena had a crew of 180. Around thirty Iranians were rescued from the sinking ship and 87 bodies have been recovered so far, according to Sri Lankan authorities.
Iranian Foreign Minister Abbas Araghchi wrote on social media that the US will "bitterly regret" the torpedo attack.
On Tuesday, the United States sank another Iranian warship, a missile-equipped corvette called the Soleimani, Hegseth said.
