"We have succeeded in getting the death sentence overturned. Our concern was to make sure that the original sentence was not carried out," Harsha de Silva, the deputy foreign minister, told reporters in Sri Lanka's capital.
"The government of Sri Lanka wishes to acknowledge and appreciate the good offices of the Saudi authorities," De Silva said.
"The sympathy, understanding and the concern expressed, and assistance extended, by many other parties is also noted and deeply appreciated."
The 45-year-old married mother of two, who has not been named, was convicted of adultery in August after her arrest in April last year.
She was sentenced to death by stoning, while an unmarried Sri Lankan man convicted alongside her was sentenced to 100 lashes.
De Silva said the Sri Lankan government had not appealed on behalf of the man. It ws not clear if his punishment had been carried out.
De Silva said the government did not want to restrict anyone seeking employment abroad.
Lawmakers from both the government and the opposition had united earlier this month in urging Colombo to secure clemency for the woman and a pardon for the man.
Neither is said to have had legal representation when their case was first taken up and the Sri Lankan authorities were alerted to the case only after the sentence was announced.
Foreign employment minister Thalatha Athukorala said many Sri Lankans employed in Gulf states got into trouble as they were unaware of local laws as well as cultural and religious practices.
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