Found a solution. However I'm not quite sure whether there is any better way to do the same. Please provide your feedback.
Test Select2
Open Browser
http://ivaynberg.github.io/select2/ firefox
Wait Until Page Contains Element xpath=/html/body/div[2]/section[3]/article/div/p[3]
Click Element id=s2id_e1
Element Should Be Visible id=select2-drop
Input Text xpath=/html/body/div[4]/div/input Hawaii
Click Element xpath=//li/ul/li/div
Thanks,
Krishantha.