Chasing 203 for victory, India began on a disastrous note with Sachin Tendulkar -- who opened the innings with skipper Rahul Dravid -- and Virender Sehwag dismissed cheaply by Nuwan Zoysa, both caught clipping the ball to midwicket.
The visitors recovered to 128 for three thanks to Yuvraj (61 not out) but slipped to 153 for seven, before Ajit Agarkar's resolute 32 and a doughty knock from Ramesh Powar saw them home with 33 balls to spare.
Yuvraj steered the Indian innings after the early hiccups, stroking the ball sweetly off his pads and hitting some lovely drives through the covers in his 57-ball 61. His 65-run partnership with Dravid (47).
Earlier, Upul Tharanga made a classy 88, but with the exception of a sedate 31 from Jeevan Mendis, there was little support from the top order.
The Indian bowlers -- apart from Agarkar who went for 45 in his seven overs -- gave little away and only a late charge from Akalanka Ganegama, who thumped 29 off 27 balls, took host side's score to 202 for nine.