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Sri Lanka, after losing the toss, made 181 for eight against India in the second Champions Trophy semi-final at Cardiff on Thursday.
Sri Lanka captain Angelo Mathews top-scored with 51 in an innings where no other batsman made more than Mahela Jayawardene's 38.
Ishant Sharma led India's attack with three for 33, with off-spinner Ravichandran Ashwin taking three for 48.
The winners of this match will face hosts England, who beat South Africa by seven wickets at The Oval on Wednesday, in Sunday's final at Edgbaston.