Thirty-two Burmese nationals have been rescued from a sinking ship by the Sri Lankan navy after the wooden vessel began to sink en route to Australia.

The navy said the 31 men and a boy were found 463km (250 nautical miles) off eastern Sri Lanka on Saturday and were being treated for acute dehydration.

The survivors have claimed that there were 98 others on board the vessel with them when they set sail two months ago.

They allegedly died during the journey and their bodies were thrown overboard.