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Lila is usually translated as ‘play’ or ‘sport’. The gods & goddesses are said to act from the state of lila – i.e. they do as they do because it amuses them, rather than acting from a sense of duty or obligation.

He who has this realisation, being constantly united with the Divine, views the entire world as the play and is liberated whilst still alive. There is no doubt about this.
Spanda Karika

Thy sport becomes in this world the cause of the diversity of the knower, knowing, knowledge and the knowable. Since on thy play being over, that diversity disappears somewhere, thou art seldom seen in that light and only by some.