Sri Lanka have emerged as favourites to stage September's International Cricket Council (ICC) Knockout tournament following the withdrawal of hosts India. The Indian cricket board's (BCCI) decision follows their failure to win any concessions from the government in their long-running dispute over tax on ticket sales. The BCCI argues that sporting events should be exempt from entertainment tax.

"We have not received the exemption so far and it does not look like we are going to get it," said BCCI secretary Niranjan Shah. "As time is running out, we have withdrawn from hosting the event. Without the tax exemption, the tournament is financially not viable."

Shah added that of the three candidates who have expressed an interest in stepping into the breach (Australia, Sri Lanka and Sharjah), he thought that Sri Lanka were the front-runners.

ICC will make the decision at its executive-council meeting in Colombo in March.

New Zealand are the current ICC Knockout champions. They defeated India in the final of the 2000 tournament which was held in Kenya.

© Wisden CricInfo Ltd