New Zealand defeated Sri Lanka by 65 runs in the ICC T20 World Cup.
Skipper Dasun Shanaka top-scored with 35 off 32 deliveries before he was caught in the deep off Trent Boult, who finished with career-best figures of 4-13.
Bhanuka Rajapaksa also made 34 off 22 balls with three fours and two sixes. None of the other batters managed double figures.
“We had a good start and could have taken complete control of the game but that dropped catch off Phillips proved crucial,” Shanaka said. “Catches win matches. We failed to hold onto that chance and he took the game away from us.”
It has been an awful campaign for 2014 champion Sri Lanka, which had to qualify for the event after falling down the rankings.
Injuries to key players have left Sri Lanka with a depleted side and it has two points from three games.
“We are still not out of the tournament but it’s not in our hands now,” Shanaka said. “We need to win our next game against Afghanistan by a big margin and knock off England as well in our last game.”