The appointment is on an interim basis
The appointment was not permanent, the organisation added.
Former bowling coach Craig McDermott stepped down after the World Twenty20 tournament in India.
West Australia bowling coach Adam Griffith is joining the Australian team for their triangular limited overs series in West Indies in June.
Donald will join the team for the three Tests, five One-day internationals and two Twenty20 matches in Sri Lanka from July 26-September 9.
"I'm really excited about the new challenge," Donald said in an interview on Cricket Australia's website.
"When Boof (coach Darren Lehmann) asked me I didn't expect that at all.
"For me as an international cricketer playing against Australia, there was a lot of respect for the way they played their cricket."
The 49-year-old played 72 Tests for South Africa, taking 330 wickets and was considered one of the best fast bowlers of his generation.
He has also spent time as bowling coach for New Zealand and then for his native South Africa from 2011-15. He is currently bowling coach for the Royal Challengers Bangalore in the Indian Premier League.
"He brings a wealth of experience with him and our guys will benefit greatly from having him around," Lehmann added in a statement.
"His Test record speaks for itself and he was without a doubt one of the most formidable bowlers of his generation.
"He has also had considerable success in sub-continent conditions and will bring a fresh perspective, and challenge some of our thinking."
Lehmann added that former Australia player Stuart Law would join the team for the tour as batting coach.
Current batting coach Greg Blewett has been excused to spend time with his family, with his second child due to be born during the tour, CA said.
Law has coached both the Sri Lanka and Bangladesh national side and Lehmann said his knowledge of local conditions would be a massive help for Steve Smith's side.
"It's great to have Stu back in the Australian team for this period," Lehmann said.
"His knowledge of batting in Sri Lanka is a huge advantage for us on this tour."
Image: Allan Donald
Photograph: Philip Brown/Reuters
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