Both teams discussed whether they should play, and decided they should in respect for Hughes, England captain Alastair Cook said today.
"It was a really, really sad day yesterday. Tragic day for cricket, and words that I say here aren't going to do any justice really," Cook said.
"I know discussions were on whether we should be playing tomorrow. Both sides agreed to have respect; we should carry on playing tomorrow. Show respect in the right way for Phil."
Sri Lanka and England will observe a two-minute silence tomorrow, and sport black armbands.
"We never expect a thing like this to happen when we bowl a bouncer," Sri Lanka captain and fast bowler Angelo Mathews said.
"We pray that we never hear of something like this ever again."
Cook said he remembered Hughes as an outstanding young talent who shared with him a common interest in farming.
"I remember talking to him a fair bit after the series in 2013 ... Both being left-handed opening batsmen, we went about things in different ways, but picked each other's brains. His love for farming as well with his cattle, gave us some ground to talk on."
"It will be very hard to get over; he's a wonderful, humble guy, and a gentleman," Mathews said.
The captains said the tragedy was unlikely to change their approach to the game, but called for improved safety.
"This is a really tragic accident. I don't think we should change the way cricket is played," Cook said.
"We have got to make sure that we keep working as hard as we can, manufacturers and authorities, to make cricket as safe as you can. This is a real reminder to everyone that they can't take anything for granted."
Sri Lanka won the first of seven ODIs by 25 runs on Wednesday.
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