No, that's an outright lie and I think you know it, but prefer to pursue a different agenda.
Sri Lanka didn't want Israeli medical personel, yes, who are in the IDF, in their country. They're happy to take humanitarian aid, and Israel is happy to send it.
MDA SENDS MEDICINES TO SRI LANKA
(Communicated by the Magen David Adom Spokesman) Wednesday, 29 December, 2004
Magen David Adom, in coordination with the International Red Cross, at midnight last night, dispatched - on an El Al flight - a shipment of medicines to Sri Lanka in order to aid trauma victims. The shipment contained 4,080 bottles of serum albumin (a protein produced from blood plasma for use in treating trauma victims, and patients suffering from malnourishment and liver disease), worth over $100,000. The shipment will be distributed among hospitals in the Sri Lankan capital Colombo.
In the CWN article you linked to, it says: "Israel refused to send only the medical teams."