The boundary layer flow and heat transfer over a permeable sheet axisymmetrically shrinking with velocity inversely proportional to the radial distance, is investigated subject to suction at the surface. The suction at the sheet is assumed to be inversely proportional to the radial distance. The governing partial differential equations for boundary layer flow and heat transfer are reduced into ordinary differential equations (ODEs) by a similarity transformation. The reduced ODEs are then solved numerically by finite element method for power-law temperature boundary conditions. It is found that radial velocity is decreased with the increase in suction at the surface. It is also observed that the thermal boundary layer thickness decreases with the increase in suction parameter and Prandtl number. For some values of power law index, temperature overshoot is observed. Some solutions involving negative non-dimensional temperature values are also noticed.