Nothing went right for the Lankans as the Australians, who were missing skipper Ricky Ponting due to a hamstring injury in the knock-out game, bowled out Sri Lanka for a mere 101 in 19.3 overs before achieving the target in 10.2 overs.
Matthew Hayden (58 off 38 balls, 7x4, 2x6) and stand-in captain Adam Gilchrist (31 off 25 balls, 4x4) quickly knocked the stuffing off the bowlers, hitting them all round the park.
Hayden gave the finishing touches to a dominating all-round performance by hitting Jehan Mubarak for six over mid-wicket to seal the victory.
Australia became the second team after Pakistan to enter the last four from Group F.
Gilchrist won the toss and put Sri Lanka in, and his pacers, led by Stuart Clark (4-20), did not release the Lankans from their vice-like grip, dismissing them for the fifth lowest score in international Twenty20 cricket. Brett Lee started the rot trapping Sanath Jayasuriya lbw for a duck in the first over and the wickets kept falling with monotonous regularity as Sri Lanka never recovered.
Score board
SRI LANKA
Tharanga c Lee b Bracken 4
Jayasuriya lbw Lee 0
Sangakkara c Clarke b Clark 22
Jayawardene c Clark b Lee 1
Silva c Lee b Clark 6
Dilshan c Gilchrist b Clark 3
Mubarak c S’onds b Watson 28
Maharoof c Clarke b Clark 0
Vaas c Lee b Symonds 21
Malinga (not out) 12
Fernando c and b Bracken 0
Extras (LB-1, NB-2, W-1) 4
Total (all out, 19.3 overs) 101
Fall of wickets: 1-1, 2-9, 3-11, 4-21, 5-30, 6-43, 7-43, 8-83, 9-99.
Bowling: Lee 4-0-27-2, Bracken 3.3-0-14-2, Johnson, 4-0-18-0, Clark 4-0-20-4, Watson 3.2-019-1, Symonds 0.4-0-2-1.
AUSTRALIA
Gilchrist (not out) 31
Hayden (not out) 58
Extras (B-4, LB-2, NB-1, W-6) 13
Total (for no loss, 10.2 overs) 102
Bowling: Vaas 2-0-21-0, Fernando 3-1-12-0, Maharoof 2-0-34-0, Dilshan 2-0-13-0, Lasith Malinga 1-0-8-0, Jehan Mubarak 0.2-0-8-0.