Colombo, Sri Lanka, Oct 8: Mahela Jayawardene stepped down as Sri Lanka's Twenty20 captain after losing the World Twenty20 final against West Indies by 36 runs on Sunday.
"I think we need a young leader," Jayawardene said. "It's a great opportunity for somebody to start (captaining) in the T20 format."
Jayawardene said he had informed the selector about his decision before the tournament began last month and they were quite happy with the choice he had made.
However, Jayawardene said he would continue to lead the side in test matches and one-day internationals until the tour of Australia later this year, and if the new Twenty20 captain wanted him to compete as a player in that format he would continue.
"I haven't stepped down from the other formats (test matches and ODIs), obviously I took over until December. ... I will assess what I want to do after that."
He led Sri Lanka in 19 Twenty20s, winning 12 and losing 6 with one tied match.
Sri Lanka was well placed to win a first major title in 16 years up until the 10th over as West Indies struggled at 32-2.
But Marlon Samuels smashed six sixes and three fours in his blistering knock of 78 off 56 balls to guide the West Indies to a competitive 137-6.
Jayawardene top scored with 33 in the unsuccessful run-chase to the much disappointment of 35,000 home fans at R Premadasa Stadium.
"It hurts a lot because you want to do something special, not just personally but for the public as well," Jayawardene said. "We've been playing some really good cricket, but unfortunately we haven't been able to cross that (final) hurdle."
Sri Lanka lost just one game in the tournament before Sunday's final — a rain-shortened seven-over-a-side group match against South Africa at Hambantota.
Jayawardene's team was trying to become the first host nation to win the tournament, and looked to be on their way to an elusive title as they defeated defending champion England in Super Eights, won one-over eliminator against New Zealand and had an easy nine-wicket win over the West Indies.
Even against a dangerous Pakistan, Sri Lanka's bowling attack looked far superior as they won the semifinal by 16 runs.
But when it really mattered, Jayawardene's reliable pace bowler Lasith Malinga came under the hammer of Samuels in the final.