Australia could be out of the T20 World Cup before they even play their final first round group match after a stunning fightback by Sri Lanka in Pallekele.
Returning captain Mitch Marsh and a revived Travis Head looked to have set Australia on course for a victory that would have kept their tournament hopes alive as they smashed a century-plus opening stand at more than two-runs-a-ball.
But after Head was dismissed, the innings collapsed with Australia losing ten wickets for 77 in 69 balls.
Nevertheless, though dismissed for 181 off the last ball, Australia still set a record chase for Sri Lanka at home, which looked even more daunting after recalled opener Kusal Perera was dismissed early on.
But Pathum Nissanka scored a brilliant 52-ball unbeaten 100 as the co-hosts made light of the challenge, winning by eight wickets with two overs to spare.
The result put Sri Lanka into the Super Eights. If Zimbabwe beat Ireland on Tuesday, Australia will be out of the World Cup. Even if Zimbabwe lose, Australia need them to also lose against Sri Lanka on Wednesday.
Australia’s hopes of qualifying for the knockout stages of the 2026 T20 World Cup have been left hanging by a very thin thread after they suffered an eight-wicket defeat by Sri Lanka
Pathum Nissanka (pictured) struck an unbeaten century off 52 deliveries to lead his side to victory
The Aussies will be eliminated from the competition if Zimbabwe beat Ireland on Tuesday
If Zimbabwe do lose both matches, Australia must then need to beat Oman on Friday, and do so convincingly enough to finish above the African side on net run rate.
Australia’s batting was an innings of two parts. For the first 50 balls Australia were dominant as Marsh and Head put on 104. Sri Lanka’s woes deepened when seamer Matheesha Pathirana suffered a calf injury four balls into his opening over and was unable to continue.
Marsh, playing his first match of the tournament after suffering a testicular injury, highlighted the top-order verve Australia have been missing with eight fours and a six.
Head had made 50 runs combined in his past four innings, but he reached that landmark in 27 balls with a brutal display of hitting, posting seven fours and three sixes.
With the pair rampant, Australia, who had been put in to bat, were 0-70 at the end of the six-over power play with Marsh hitting the final five balls, bowled by the dangerous Maheesh Theekshana, to the boundary.
But in mid-innings, the spinners changed the game. After Head was caught on the boundary for a 29-ball 56, wickets tumbled and the rate slowed.
From 0-104 Australia slumped to 4-130 with Marsh among them, lbw on review for a 27-ball 54.
Nissanka (pictured) scored the first century of the 2026 T20 World Cup after Sri Lanka had been set a target of 182 to win
Mitchell Marsh (left) returned to action and struck 54 off 27 deliveries. He combined well with Travis Head with the openers combining for a partnership of 104
Australia can still advance to the knockout stages if Zimbabwe lose their next two games. Marsh’s (pictured) team will need to beat Oman on Friday convincingly enough to finish above Zimbabwe on the run rate
Head’s exit had brought in Green but he was quickly stumped. With scores of 21, 0 and 3 in the competition he was a contentious selection given the arrival of Steve Smith and the good form of Matt Renshaw. The Queensland batter made way for Marsh despite being top scorer with 65 in the shock loss to Zimbabwe that had put Australia under pressure to win this match.
Tim David (six) was also caught in the deep and it could have been worse. Josh Inglis, who accumulated the third-best score of 27, should have been stumped first ball.
His eventual departure, after Glenn Maxwell (22) had been superbly caught by Nissanka reverse sweeping, prompted another clatter of wickets, the last five going down for seven runs in 12 balls.
It still looked a testing target and Australia made an early inroad when Stoinis had Perera caught at deep point. But Nissanka and Kusal Mendis then added 97 off 66 balls to keep the match in the balance.
It took the return of Stoinis to break the partnership, Mendis being caught by Connolly at deep mid-wicket for a 38-ball 51.
But that was as good as it got for Stoinis. The new batter, Pavan Rathnayake, carted his first two balls for four and 20 were taken off Stoinis’ next over, the 15th.
That brought the target down to 41 off five overs. Sri Lanka only needed three, taking 10, 18 and 15 off them with Nissanka completing a majestic century off what proved the penultimate delivery.