Having failed to win the Test series after the tourists won the final Test at Trent Bridge to level the series, England suffered a narrow defeat in the final over.
Chasing Sri Lanka's total of 163, opener Marcus Trescothick seemed to have put England on course for victory with a superb 72 to leave them needing nine off the final over.
But seamer Dilhara Fernando restricted debutant Tim Bresnan and Geraint Jones to just five runs to lift the tourists' spirits going into this week's five-match one-day series.
Sri Lanka had earlier been given a flying start with Sanath Jayasuriya and Upul Tharanga racing to 68 in only seven overs until Collingwood was introduced in the next over to spark a collapse.
Collingwood struck with his fifth ball, bowling Tharanga off an inside edge after he had hit 34 off only 25 balls, and prompted a collapse of six wickets in six overs.
Impressive
Durham all-rounder Collingwood finished with impressive figures of four for 22 from his four overs, but with Ed Joyce in hospital having an x-ray on soft tissue damage on his right ankle sustained in the field England were always a batsman light.
Captain Andrew Strauss gave them a flying start with 22 from 21 balls, including six fours, but once he had been bowled playing across the line England's innings quickly lost momentum.
It took opener Trescothick, run out in the penultimate over after hitting 72 off 57 balls including nine fours and a six, to restore England's victory charge.
But left with only nine runs for victory, neither Jones or Bresnan could find the boundary they required and Sri Lanka celebrated another unlikely victory. Tweet

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