The Indians, who did well to restrict Sri Lanka to a modest 228-9 from 50 overs, collapsed under the lights at the Premadasa Stadium to be shut out at 203-9.

Sachin Tendulkar was the lone top-order batsman to defy the Sri Lankans, making a spirited 74 after a 10-over spell of tidy leg-spin which fetched him two wickets for 40 runs.

The ninth-wicket pair of Harbhajan Singh and Zaheer Khan put on the highest stand of the innings of 46, but the effort came too late to deny Sri Lanka victory.

Sri Lankan leg-spinner Upul Chandana demolished India's batting on the dry, slow surface, taking the wickets of Vice-captain Rahul Dravid, Yuvraj Singh and Mohammad Kaif.

Sanath Jayasuriya claimed two for 34 and was declared man of the series for his all-round effort earlier in the tournament.

It was India's 10th defeat in their last 13 one-day finals with the lone victory coming in the NatWest Trophy against hosts England at Lord's in 2002. Two matches were rained off.

"We need to pick up in all areas," said a disappointed Indian captain Ganguly.

"We did not bat well, did not bowl well and did not field well. The team has to show commitment. We need to get our heads right.

"A total of 228 was always chase-able even though the wicket was slow. But we did not have many partnerships."

Sri Lankan captain Marvan Atapattu, who top-scored with 65, was named man of the match.

"We deserved to win because we were the best team in the tournament," he said.

"The boys had been working hard and this was just reward for their efforts.

"It was not the easiest wicket to bat on but we took our chances and won."

Atapattu added 116 for the third wicket with Kumar Sangakkara (53) to steady the innings that was rocking at 31-2 in the eighth over.

But 32 extras was the next highest contributor as the Indians sent down 11 wides and three no-balls.

India, who needed 4.58 runs an over to win, made a disastrous start when they lost Virender Sehwag and Ganguly by the eighth over with the total at 26.

Sehwag was trapped leg-before by Chaminda Vaas for five, while Ganguly was superbly caught in the slips by a diving Mahela Jayawardena off Nuwan Zoysa.

Venkatsai Laxman, returning from a knee injury, helped Tendulkar take the score to 62 when he mistimed a drive off Jayasuriya to short mid-off.

India slid further to 96-4 in the 27th over when Dravid edged Chandana to Tillekeratne Dilshan at first slip, who juggled with the ball before taking the catch.

Chandana struck again in the 35th when he clean bowled Yuvraj Singh, who managed only eight runs in his 100th one-dayer.

Mohammad Kaif holed out in the deep off Chandana after making five, before Tendulkar himself departed.

Having hit seven boundaries and a six, Tendulkar was seventh out when he was bowled by Dilshan. It was just reward for the off-spinner who had two close appeals for leg-before turned down by New Zealand umpire Billy Bowden.