Sirisena, 63, and his new Prime Minister Ranil Wickremesinghe, who till now was the leader of opposition, both took the oath of office in the Independence Square, marking a smooth transition of power.
Supreme Court Justice K Sripavan administered the oath to Sirisena.
"I will ensure I deliver the change I promised. I will strengthen Sri Lanka's foreign relations to maintain friendly relations with all nations," he said.
Sirisena said he will not seek a second term.
Wickremesinghe, 61, had met Rajapaksa in the morning when he conceded defeat and gave an assurance of smooth transition of power.
Sirisena was officially elected as the sixth President of Sri Lanka by Commissioner of Elections Mahinda Deshapriya.
Much before the declaration, Rajapaksa, who was accused of practising politics of dynasty, conceded defeat early in the morning and left the presidential house 'Temple Trees'. After his victory, Sirisena thanked Rajapaksa for ensuring a fair poll.
The Tamils, who account for 13 per cent, angered by Rajapaksa's successful military campaign that crushed the LTTE voted for the opposition unity candidate Sirisena.
In the run up to the election, Sirisena had pledged to abolish the executive presidency within 100 days of being elected, repeal the controversial 18th amendment under which a President can seek re-election any number of times, re-instate the 17th amendment.
Sirisena and Wickremesinghe yesterday formed the New Democratic Front, a broad coalition of Sinhala majority, Tamil and Muslim minority parties.
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