I think it would work - haven't tried it though - but I would think that you might have to fill up the olla more frequently in a sheet mulch bed than you would in the ground, potentially. It'll be interesting to see.
This was an interesting study on the effectiveness of various mulches:
http://ucanr.edu/sites/UrbanHort/files/80238.pdf
Might be of use in looking at what you plan to use for your mulch, possibly.