Shiromini Satkunarajah, who is studying electrical engineering at Bangor University, North Wales, faced being sent to her country of birth with her mother Roshina on Tuesday morning.
The student, who has lived in the UK since she was 12, faced leaving the UK three months before completing her degree.
The Home Office rescinded her deportation order on Monday, shortly after her local MP Hywel Williams raised a point of order in the House of Commons.
Satkunarajah and her mother were due to be released from Yarl’s Wood detention centre on Monday evening.
Williams, the Plaid Cymru Westminster leader, said: “This is the news we’ve all been hoping for. I’m so very glad that Shiromini and her mum have had this deportation order rescinded and released from the detention centre.
“I’d like to thank everyone who backed the campaign to have the deportation order lifted. So much has been achieved in so little time.”
He added: “The outpouring of support from across the country has been staggering, particularly from North Wales, where Shiromini is highly regarded within the Bangor community.
“Since the campaign was launched on Friday I’ve received messages of support for Shiromini from across the country and I’m glad that Bangor University will now be able to welcome one of their best students back.
“Of course the campaign to right this unjust situation is not over. There is clearly something seriously wrong with the current system and it is an issue I intend to pursue.” (Colombo Gazette)