She was 53 and had been undergoing treatment for cancer for the last few months.
Daughter of eminent classical singer M L Vasanthakumari, Srividya entered the film world at a very young age doing a prominent role in the Sivaji Ganesan-starrer Thiruvarul Selvar.
She, however, made it big in Malayalam ever since her debut film Chattambikavala in 1969. Srividya had put up memorable performance in scores of Malayalam films and she won the state government's best actress award twice.
At the height of her career, she married businessman George Thomas but they separated some years back. She had also acted in several Malayalam television serials.
Srividya will be cremated with state honours in Thiruvananthapuram on Friday, an official spokesman said.
The body of the actress would be kept at the VJT hall in Thiruvananthapuram in the morning for her fans and the public to pay last respect to her. The cremation will take place at the Brahmin Samajam crematorium at Karamana in the city later in the afternoon.