IGP Pratap Reddy told reporters that 13 people were arrested last night in connection with the "first major case of human trafficking in Karnataka" besides seizing 6,000 litres of diesel, Rs 2.48 lakh in cash, food items, mobile phones from them.
The refugees were set to leave for Australia.
He said the accused posed themselves as agents sending refugees to a foreign country through sea route for better livelihood.
The Sri Lankans were from refugee camps in Chennai, Palar, Madurai, Pudukottai and Tirunelvelli in Tamil Nadu, he said.