He is the first Sri Lankan to hold that title.
It is a lifetime position, and is equal to a cabinet minister, and a Field Marshal salutes only the head of state.
He will have a special security detail and a private staff.
Following a parade by the three armed forces, Field Marshal Fonseka left in a vehicle with five stars.
President Sirisena said on the occasion that his predecessor Mahinda Rajapaksa gave political leadership for the war, while Field Marshal Fonseka headed the battlefront leadership.
During the Rajapaksa regime, he was tried by a military tribunal on a charge of involvement in a conspiracy against the state and sentenced to prison.
He also lost his pension and other privileges.
The new government restored all to him.