The change in flow characteristics downstream of a circular cylinder (inner cylinder) surrounded by a permeable cylinder (outer cylinder) made of a high porosity screen was investigated in shallow water using Particle Image Velocimetry (PIV) technique. The diameter of the inner cylinder, outer cylinder and the water height were kept constant during the experiments as d = 50 mm, D = 100 mm and h(w) = 50 mm, respectively. The depth-averaged free stream velocity was also kept constant as U = 180 mm/s which corresponded to a Reynolds number of Re-d = 9000 based on the inner cylinder diameter. It was shown that the outer permeable cylinder had a substantial effect on the vortex formation and consequent vortex shedding downstream of the circular cylinder, especially in the near wake. The time averaged vorticity layers, streamlines and velocity vector field depict that the location of the interaction of vortices considerably changed by the presence of the outer cylinder. Turbulent statistics clearly demonstrated that in comparison to the natural cylinder, turbulent kinetic energy and Reynolds stresses decreased remarkably downstream of the inner cylinder. Moreover, spectra of streamwise velocity fluctuations showed that the vortex shedding frequency significantly reduced compared to the natural cylinder case.