The Islanders restricted India to 130-4 after electing to field, and then cruised past the modest target with 13 deliveries to spare.
It was Sri Lanka's first victory in five finals over the past seven years, having lost twice in the 50-over World Cup finals in 2007 and 2011, and the World Twenty20 finals in 2009 and 2012.
Left-hander Kumar Sangakkara, who was declared man of the match, remained unbeaten on 52 off 35 balls to take Sri Lanka home after their bowlers restricted the 2007 champions to 130 for four wickets. Sri Lanka reached their target with 13 balls to spare. Virat Kohli top-scored for India with 77 off 58 balls.
Sri Lanka's stand-in captain Lasith Malinga won the toss in the World Twenty20 final in Dhaka on Sunday and sent India in to bat.
The start was delayed by 40 minutes due to rain, but was played over the full duration of 20-overs-a-side at the Sher-e-Bangla stadium.
Sri Lanka's T20 captain Dinesh Chandimal once again opted out of the game, as he had done in Thursday's semi-final against the West Indies, leaving Malinga to lead the Islanders.
India managed a below-par total of 130-4 against Sri Lanka despite a brilliant half-century by Virat Kohli in the final of World Twenty20 in Dhaka on Sunday.
Kohli scored a 58-ball 77 for his eighth Twenty20 half-century, his fourth in this tournament.
The rain spiced up the pitch for bowlers but Kohli was at his best when he came to the crease after India lost Ajinkya Rahane (three) in Angelo Mathews's second over of the innings.
Let off by Lasith Malinga at mid-wicket off left-arm spinner Rangana Herath's first delivery when 11, Kohli took full advantage of the laspe by hitting five boundaries and four sixes before he was run out off the final delivery.
But apart from Kohli, none of the Indian batsmen could score at a faster pace against a disciplined Sri Lankan bowling attack.
Kohli added 60 for the second wicket with Rohit Sharma (29) and another 55 for the third with Yuvraj Singh who slowed down the tempo with a snail-paced 11 off 21 balls.
Sharma hit three boundaries during his 26-ball knock before he was caught off Herath who finished with 1-23 in his four overs.
India remained unchanged from the side which beat South Africa in the semi-final while Sri Lanka brought in Thisara Perera for Seekkuge Prasanna from the line-up which beat the West Indies in the first pre-final.
Squads
India: Mahendra Singh Dhoni (capt), Rohit Sharma, Ajinkya Rahane, Virat Kohli, Yuvraj Singh, Suresh Raina, Ravindra Jadeja, Ravichandran Ashwin, Amit Mishra, Bhuvneshwar Kumar, Mohit Sharma.
Sri Lanka: Lasith Malinga (capt), Kusal Perera, Tillakaratne Dilshan, Mahela Jayawardene, Kumar Sangakkara, Lahiru Thirimanne, Angelo Mathews, Thisara Perera, Nuwan Kulasekara, Sachithra Senanayake, Rangana Herath.
Umpires: Ian Gould (ENG) and Richard Kettleborough (ENG)
TV umpire: Rod Tucker (AUS)
Match referee: David Boon (AUS)
COMMENTS (47)
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Pak people now slowly going away from this lazy sport cricket, good for other to win and do with it. we will beat them in football and hockey and PAK WILL be Asian football champoion
Congratulations Sri Lanka. You played like champions and deserved the victory. The better side won. And any one saying the match was fixed is doing great disservice to true champions Sri Lanka.
Hearty congratulations to Sri Lankan team and their fans. They played unbelievable to defeat team India that had been undefeated throughout the tournament. Good game of Cricket.
Congratulations to Pakistan for the fine performance by Sri Lanka.
@Raj Kafir: @Harsh And this is what exactly you people did after the final of Asia Cup, 2014. Celebrating Sri Lanka's victory, more importantly, Pakistan's defeat. Tit of Tat.
@Raj Kafir: Ouch it hurts!! come on mate dont vent your anger here, vent it on Yuvraj
@Nitin: Will Modi Sarkar ever forgive him??
Indians and Sri-Lankans both played well and both were at the top in the whole tournament. Cricket is played in the mind and Sri Lankans outsmart indians in the final.
Well played SL.Congrats to Sri Lankan team and nation.
Yuvraj singh has a great heart for giving a farewell gift to these two great sri lankan batsman.
india and sri lanka both deserved this cup
@true pakistani: hahahahah @ ur team's lousy and pathetic performance.....indeed ...hahahahaahah ....kicked out at the very starting .... yes...hahahahaha :D
@dakshin Whenever india loses or wins we never rant it's fixed. We trust our team as well as efforts of other teams be win or loss.
Well played lankans. Indian team fanastic performance throughout tournament without a loss than final. Great effort, better luck next time.Happy the World Cup was claimed and will remain in South Asia. :)
Congrats to SL team, they were the deserving one. Not only they played with proper planning but also they showed that no-one is above the game. The captain Chandimal sacrificed his own place to accommodate Malinga as captain, although he is good player, but Chandimal didn't put his ego forward. However, it seems that we gotta still learn something as Yuvraj was persisted despite bad form unlike Shikhar Dhawan who was left out after Rahane came good. Yuvraj failed miserably nor he showed the common-sense of getting his wicket down if he wasn't able to make the runs. Sacrifice was needed at some time but that was not to be.
Both teams played brilliant cricket .......... about 5 hours of sheer pleasure. It was Sri Lanka's day and they deserve every accolade they receive.
The moment of bitter truth for India: Hard-liner Narendra Modi vs Heart-throb MS Dhoni..!!
How does it feel India.... I remember your celebrations when Pakistan lost T20 final. I cannot be more happy...
atleast now it proves that world cup finals are not fixed, coz had it been money then India will never lose
Indians played well & they deserve the applaus & appreciation. As said this is cricket, someone has to win. Well done, it was fine match.
@Nitin: Relax...India Played well but not able to win big Final..
At last some cheers for Pakistanis, They are really enjoying the defeat of Indians which pakistanis could not achieve
condragulations to sri lanka,,,,,,,,,,,,,,,,,,Well played
Congratulations to SriLanka.
congratulations Sri Lanka!
Sri Lanka was too strong for India today. I think bringing in yuvraj was a mistake. Raina should have played first. Yuvraj played very slowly. I think he should retire and give young players chance to perform.
Congratulations Pakistan, you guys fired at Sri Lanka in Lahore and today Sri Lanka beat India. It is Pakistan's victory. Pakistan deserve to celebrate.
This is partly because of Yuraj ( Though he is my one of favorites). He drowned everything today and also can someone please ask Virat to Don't celebrate until it is over!
@Real Truth: you should have taken the today's medicines for depression and frustration
Congratulations to Sri Lanka. Well played.
Hahahahahaha
Congratulations Sri Lanka! Well done!
respect kohli..... simply wow.... highest run getter and what consistency..... and yuvraj u were once a great player.... however u screwed up the proceedings today..... it should also be noted the superb balling by lankans at the end.... lanka deserved it..... everytime entering the finals they would loose.... its 9-9 score lanka.... bring it on next time..... it was a wonderful journey of team india..... remaining unbeaten till now and keeping us in the game till very end.... thank u for that......hope BCCI invests more and find the faults....and rectify them... good night :)
An Indian must have selected the pictures. They all show Indians celebrating. Sri Lanka won so where are the pictures of Sri Lankans celebrating?
@Nitin: Thank u Dhoni for your kind act. It is much appreciated and it clearly shows that common man, across the two countries, has the desire to reach out and built bridges, if only the Indian gov. (BJP??) could understand.
Amazing game by Sri Lanka!!!!!! You were the winners in every sphere of match today............ Congrats..............
Better team won and No the game wasn't fixed.
No worries indian boys !! You played well throughout the tournament. We Indians are proud of u.
Congratulations SL! Well done! We are with you in your happy moments.
@Nitin: relax!!! SL did the same for Dhoni, et al. Now, go back and help Dhoni lick his wounds!
Thaa yakeen keh aey gee yeh rataan kabhee #PTV #INDvsSL
NEWS for Pakis.
MS Dhoni Arranges Final Ticket For Pakistan Fan
http://ibnlive.in.com/news/cricketnext/ms-dhoni-arranges-final-ticket-for-pakistan-fan/462966-78.html