Captain Brendon McCullum looked dejected after being dismissed for a duck.
Rangana Herath was the wrecker-in-chief for Sri Lanka he claimed five wickets giving away just three runs.
Tillakaratne Dilshan scored just 8 runs off 11 deliveries before being dismissed by Boult.
Mahela Jayawardene (25) tried to propel Sri Lankan innings but fell to Nathan McCullum.
Pacer Trent Boult claimed three wickets to wreck havoc on Sri Lankan batsmen as New Zealand shot them out for just 119.