England's Under 19 World Cup campaign suffered a blow with a one-wicket defeat to Sri Lanka in Dubai on Sunday.
Jonathan Tattersall top-scored with 95 and skipper Will Rhodes hit 38 as England, batting first, recovered from 43-4 to post 230-9.
In reply Sri Lanka got off to a good start, with opener Sadeera Samarawickrama scoring 82, and Tilaksha Malshan also contributing 42 before he was caught off Dominic Sibley to leave his side nine wickets down and needing nine runs off 17 balls.
But Anuk Fernando scored 10 not out as he steered Sri Lanka to victory to sit unbeaten at the top of Group D, with two wins out of two.
England, who had begun their campaign with a 213-run win over the United Arab Emirates on Friday, now face New Zealand on Tuesday as the pair battle to progress into the quarter-finals of the competition.
Rhodes told the ECB's official website: "Tattersall played magnificently to get us to a respectable score that we could bowl at.
"To lose by one wicket is quite devastating really. It was quite nerve-wracking at the end. We took it right to the end and that's all we could do.
"New Zealand will be another good challenge but we can take confidence from this. I am sure we will play well on Tuesday."