I believe the problem is with Java version 7. I'have java 7 on my OS Mavericks, and I'm seeing the same problems. I then looked into android executable (which is a bash script) and put set -ex
on top of it. That way, I saw the exact command being run:
/System/Library/Frameworks/JavaVM.framework/Versions/1.6.0/Commands/java -Xmx256M -XstartOnFirstThread -Dcom.android.sdkmanager.toolsdir=/android/android-platform-v1-1/sdk/tools -classpath /android/android-platform-v1-1/sdk/tools/lib/sdkmanager.jar:/android/android-platform-v1-1/sdk/tools/lib/swtmenubar.jar:/android/android-platform-v1-1/sdk/tools/lib/x86_64/swt.jar com.android.sdkmanager.Main update sdk
So I just replaced java with version of java for 1.6.0, which in my installation, is at: /System/Library/Frameworks/JavaVM.framework/Versions/1.6.0/Commands/java
and Android SDK Manager suddenly works!
See the related bug report.