JP Duminy took a hat-trick while Imran Tahir picked up four wickets as South Africans bowled out the 1996 World Champions for 133 runs in 37.2 overs.
Angelo Mathews (19), Nuwan Kulasekara (1) and Tharindu Kaushal (0) were all dismissed by Duminy as he registered the second hat-trick of the tournament.
Kumar Sangakkara (45) and Lahiru Thirimanne (41) tried to put up some resistance with their 65 runs third wicket partnership. Tahir dismissed Thirimanne to break the partnership and the rest of the batting line-up crumbled like pack of cards.
In the heavy-weight clash, Tahir bowled brilliantly and took four wickets by giving away only 26 runs for the side who have been often termed as 'chokers' for their poor show in crucial matches of the World Cup.
Sangakkara, who has already created a record of hitting centuries in the ongoing World Cup, was slow in his approach and played 96 balls to score his 45 runs. He hit three boundaries in his knock.
A win on Wednesday will ensure a place for the semi-final next week.
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