Wahab was named in the Pakistan squad for the T20 series but after bowling at the nets today decided against going to Sri Lanka.
"My bowling hand is still feeling uncomfortable and doctors feel I need some more rehabilitation. So I have withdrawn," he said.
The Pakistani selectors have also named another young uncapped left-arm pacer, Zia-ul-Haq as a back-up for Wahab and he will now fly to Sri Lanka.
Wahab suffered a hairline fracture in his bowling hand while batting during the first Test against Sri Lanka last month and had to return home for treatment.
The fiery left-armer has been Pakistan's main strike bowler since the World Cup before he was injured.
"It is better if Wahab takes more rest because after bowling in the nets he did not feel comfortable going flat out and he needs more time to make a complete recovery," chief selector Haroon Rasheed said.
Since last year, Pakistan has suffered a spate of injuries to its players, including to Sohail Khan, Sohaib Maqsood and Haris Sohail.
In last few months, pacers Muhammad Irfan, Junaid Khan, Rahat Ali and Ehsan Adil and others like Yasir Shah, Mukhtar Ahmed, Hammad Azam and Muhammad Hafeez have also suffered from fitness problems making the job of the selectors difficult.
Image: Wahab Riaz
Photograph: Mark Kolbe/Getty Images