The 52-year-old, who played seven Tests and five ODIs in the 1990s, was appointed head coach of the Victoria state women's team in May.
But his tenure was short-lived after alleged inappropriate behaviour towards a woman player.
Cricket Australia's Conduct Commission banned him "from holding any position within CA or a state or territory association (including any W/BBL team) for 20 years".
In a statement, it cited a serious breach of their code of conduct.
Cricket Victoria chief Nick Cummins commended the bravery of the victim for speaking up.
"We strongly support the decision taken by the Code of Conduct Commission today, banning Dulip Samaraweera for 20 years," Cummins told cricket.com.au.
"It is our view that the conduct was utterly reprehensible and a betrayal of everything we stand for at Cricket Victoria.
"The victim in this case has demonstrated incredible strength of character and courage in speaking up."
