Dwayne Bravo's side have been at loggerheads in recent weeks with the West Indies Cricket Board (WICB) over a new collective bargaining agreement that sparked reports of players prepared to go on strike.
And the decision not to compete in the scheduled upcoming Twenty20 game and three-match Test series in India came to light as Friday's fourth of five one-day international clashes was being played in Dharamsala.
The ODI series, which also saw one game cancelled due to the weather will end after Friday's contest.
The Board of Control for Cricket in India (BCCI) reacted with dismay to the news.
A BCCI statement confirmed: "The West Indies Cricket Board (WICB) has informed the BCCI of its decision to cancel the rest of its ongoing tour to India because of a dispute with its players, and has advised the BCCI that its players will return home immediately.
"The BCCI is shocked and extremely disappointed at the decision taken by the WICB.
"The WICB's inability to resolve internal issues with its players and allowing the same to affect an ongoing bilateral series does not reflect well on any of those involved.
"The withdrawal gives little thought to the future of the game, the players and the long-standing relations between the BCCI and the WICB."
The BCCI moved quickly to replace the West Indies with Sri Lanka, who will head to India for a five-match ODI series beginning next month.
"Following the decision of the WICB to cancel its ongoing tour of India, the BCCI commenced discussions with Sri Lanka Cricket for a limited-overs series in India in November 2014," they revealed.
"Sri Lanka Cricket has confirmed a five-match ODI series between India and Sri Lanka, to be played from 1 November 2014. The series promises to be an exciting one, with Sri Lanka placed 4th in the world rankings in ODIs. India is ranked 3rd, with only 2 points separating the teams.
"The BCCI wishes to thank SLC for its swift response and for extending its support to ensure that the international cricket season is not curtailed."