Co-hosts Sri Lanka are out of the T20 World Cup after collapsing to a 61-run defeat by New Zealand in Colombo.

Needing to win to keep their semi-final hopes alive, Sri Lanka looked to be in control late into the New Zealand innings, having restricted them to 98-6 after 16 overs.

However, the bowlers crumbled in the face of a late surge from Mitchell Santner (47 from 26 balls) and Cole McConchie (31 not out from 23) and New Zealand bludgeoned 70 from the final four overs.

A chase of 169 left the game in the balance but Sri Lanka’s top order folded, with fast bowler Matt Henry taking two wickets in the powerplay.

From there, the home side failed to generate any momentum and when Rachin Ravindra had both Kusal Mendis and Pavan Rathnayake stumped in the ninth over, Sri Lanka were 29-4 and the game was up.

Left-arm spinner Ravindra, who made 32 from 22 with the bat, took a further two wickets to end with figures of 4-27, while Henry was afforded the rest of the night off after taking 2-3 from his two overs as Sri Lanka dragged themselves to 107-8.

After losing to England in their opening Super 8s game, Sri Lanka depart with a whimper while New Zealand remain in contention to reach a fifth T20 World Cup semi-final.

For much of the first innings, though, Sri Lanka’s bowlers looked like being the match-winners, with spinner Maheesh Theekshana taking 3-9 from his first three overs and fast bowler Dushmantha Chameera also impressing.

They led the way as New Zealand slumped from 75-2 to 84-6 in less than three overs.

But Sri Lanka failed to finish the job and McConchie began the fightback before his captain took over with a brutal display of hitting, dismantling a suddenly fragile Sri Lanka attack, in a stand of 84.

It took New Zealand to a competitive total that, ultimately, proved more than good enough as the spinners took over and Sri Lanka fell apart.

Both sides have one Super 8s game remaining. New Zealand can seal their place in the semi-finals with victory over England on Friday, while Sri Lanka face Pakistan in Pallekele on Saturday.