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Ethiopian athlete Kiros stayed with the front runners and pulled ahead late, fending off competition from Addisu Gobena, with Tebello Ramakongoana from Lesotho securing third.
Kiros praised the overall competition at the end of the race: “[It was] very tough, these were strong, strong fields”.
He said he always believed he would break the record, citing his strong preparation.
World-class runner Eliud Kipchoge was considered the favourite to win the race in his first trip to Australia.
However, he fell behind the leading pack with around eight kilometres to go, and he finished in 11th place with a time of 2:08:31.
Of the Australian runners, Haftu Strintzos was the fastest male, registering a time of 2:11:27 to finish 14th overall.
In the women’s race, Dutch athlete Hassan also set a new record in her first-ever appearance at the Sydney Marathon.
With a time of 2:18:20, she became the first woman in an Australian marathon to run it in less than two hours and 20 minutes.
Brigid Kosgei also broke that barrier as she finished in second place.
“It’s amazing, I’m really grateful, I’m so happy to win a course record,” she said.
“It’s history, it’s the first major marathon and I’m the first winner.”
She acknowledged she nearly exerted herself too much early in the race, noting it could have been detrimental on another occasion: “I [started] too hard and I learnt a lesson.”
Three Australian women finished in the top 10, with Leanne Pompeani recording a time of 2:11:27, followed by Jessica Stenson who clocked in at 2:28:56, and Lisa Weightman completing her run in 2:29:34.
Approximately 35,000 participants are competing today, marking the first time the Sydney Marathon holds world marathon major status, placing it among the seven largest marathons globally.
The 42-kilometre course began in North Sydney and ends at the Sydney Opera House.
The event began at about 6.20am with the wheelchair race, whilst the elite runners started just after 6.30am.