Yuvraj has not represented his country since November 2011, when a rare form of cancer sidelined him for eight months.
Chemotherapy in America, however, has afforded the 30-year-old a return to the game.
The 15-man party also features a return for spinner Harbhajan Singh, who was dropped from the Twenty20 International fold last year, and leg-spinner Piyush Chawla, who hasn’t played T20I cricket since June 2010.
The uncapped Lakshmipathy Balaji, meanwhile, is one of four seamers.
The Indians have been pooled with England and Afghanistan in Group A and their first fixture of the 12-team tournament is against the Afghans in Colombo on 19 September.
Squad: Mahendra Singh Dhoni, Virender Sehwag, Gautam Gambhir, Virat Kohli, Yuvraj Singh, Suresh Raina, Rohit Sharma, Manoj Tiwary, Irfan Pathan, Ravichandran Ashwin, Zaheer Khan, Lakshmipathy Balaji, Piyush Chawla, Harbhajan Singh, Ashok Dinda.