Apart from India and Sri Lanka, Bangladesh are the third team in Group B. In the other Group, reigning champions Pakistan have been clubbed with hosts Nepal, Bhutan and Afghanistan.
India will play their second match against Bangladesh on July 25.
The semifinals are slated for July 27 and 28, while the final will be played on July 30.
"The SAFF Championships are a great opportunity for us to study our progress. At this age, more than winning, such exposure is more important. I am glad that the boys have got it and we are raring to go," India's head coach Goutam Ghosh said at the pre-match press conference.