''Every team is entitled to lose occasionally. But after this defeat India's position of world number two team has gone in the Test cricket,'' Lee told mediapersons here.
Sri Lanka defeated India by an ininngs and 239-runs in the first Test match of the ongoing series. It was India's heaviest loss in Test cricket since 1974.
The spin duo of Muttaih Muralitharan and debutant unorthodox spinner Ajantha Mendis claimed 19-wickets in the match.
Mendis, who proved to be the nemesis for the famed Indian batting line-up in the Asia Cup final recently, claimed eight for 132 on his test debut.
Lee praised the rookie Sri Lankan bowler and stated that he has ability to win matches single handedly.
''Though I have not seen Ajantha Mendis bowling on the pitch, I think he is a very good bowler with the quality to turn the game,'' Lee said.
Replying to a query about the much hyped Champions' Trophy in Pakistan, the 31-year-old said, ''I still dont have any perception whether we would tour Pakistan. I am not an expert; we will wait for the decisions to come from the people on the grounds.
''Whether it is about touring Pakistan, South Africa or India; we go by the decisions of the Cricket Australia (CA), Australia Cricketers' Association (ACA) and the security agencies,'' Lee asserted.
Speaking about the Indian Primier League (IPL) 2008, in which Lee was a part of the King's XI Punjab team, he said it was over all a good experience with players from around the world spending few moments with each other and performing as a team.
''It is always great to try new experiences,'' he said.
''There are great memories shared with King' XI Punjab and it was great working with Priety Zinta,'' chuckled Lee.
However, speaking out-of-the-fact Lee said he is working on a song to perform live on the 2011 World Cup scheduled to be held in the Indian sub-continent.
''I am very excited for my Bollywood debut Victory, starring Amrita Rao and Anupam Kher in pivotal roles,'' Lee added.