Sri Lanka's civil war between the majority Sinhalese and the minority Tamil communities has now raged for nearly half a century. The Sri Lankan cum Sinhalese Buddhist state has since independence resisted all significant attempts by the Tamil political leadership at power sharing. Most constitutional lawyers and progressive Sri Lankan opinion (Sinhalese, Tamil, Muslim, Burgher, etc.) hold that short of a separate state, administrative power should be devolved in the form of a federal state, so as to give autonomy to the northeast of Sri Lanka, while the forces of Sinhalese Buddhist nationalism have sought to justify the centralized state by recourse to the history of Buddhism and the Sinhalese on the island. Such arguments have drawn on the ontological potential of the cosmic order of Sinhalese Buddhism, which is fundamentally hierarchical in intent. Here I argue that the diffused nature of this cosmic order provides the ontological grounding for a decentralized state structure that can accommodate ethnic difference in a non-hierarchical relation. Thus, the legacy of Sinhalese Buddhism can be rescued from the forces of Sinhalese Buddhist nationalism.