The Uruguay centre-back believes the striker's ban breaches his human rights and claims that "not even a criminal would receive this penalty"
Fifa imposed a nine-game international ban and suspended Suarez from all football-related activity for four months after finding him guilty of biting Giorgio Chiellini during Uruguay's final Group D clash last Tuesday.
With Suarez absent, Uruguay were dumped out of the World Cup following their 2-0 defeat to Colombia in the second round on Saturday evening.
"It's a breach of human rights that a player cannot go into a stadium where there are 80,000 people or into a hotel with his teammates, that he cannot work for four months," Lugano said at a press conference.
"He has committed a crime, but this [ban] is barbarity. Not even a criminal would receive this penalty."
Two strikes from James Rodriguez eased Colombia past Uruguay and Lugano admits he was not surprised that his side encountered difficulties without the Liverpool striker.
"He is irreplaceable," the centre-back said of Suarez.
"Against Colombia we weren't able to replace the skills he has. For years he has been our best player.
"Us losing him is much worse even than Brazil losing Neymar or Argentina losing [Lionel] Messi."
Edinson Cavani, however, denied that the furore around Suarez had distracted the Uruguay camp leading up to the game.
"From the moment we knew about the sanction, we only thought about Colombia," the Paris Saint-Germain striker said.
"We knew it was a tough penalty, both for him and for us, but from that moment we separated ourselves from it and we concentrated on our players."