Sri Lanka, who began the second day 227 runs ahead, fluffed an early chance when Dinesh Chandimal missed an opportunity to stump Steven Smith on 5 Associated Press
But they didn't have to wait long for a wicket - Dilruwan Perera got through Usman Khawaja's defences with a full-length arm ball AFP
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Smith failed to add to his score and was castled by Rangana Herath as Australia were reduced to 59 for 4 Associated Press
Herath then had Adam Voges caught by a diving Dimuth Karunaratne at extra cover AFP
He went on to remove Peter Nevill and Mitchell Starc off the next two balls to claim a hat-trick AFP
Perera accounted for Nathan Lyon and Josh Hazlewood soon after to pin Australia down to 89 for 9 AFP
Mitchell Marsh unleashed some big swipes and dragged his team to three figures... AFP
...before he holed out to long-off off Lakshan Sandakan as Australia were skittled out for 106 in 33.2 overs AFP
Starc and Hazlewood struck early in the second innings to leave Sri Lanka 31 for 3 at lunch, capping an 11-wicket morning session AFP
Kusal Perera and Angelo Mathews steadied Sri Lanka after the break with a brisk 48-run stand Associated Press
But Lyon had both of them bowled. When Mathews missed a reverse sweep and exited for 47, Sri Lanka were 121 for 6 Associated Press
Dilruwan Perera, however, built Sri Lanka's lead with drilled fours... Associated Press
... with assistance from Herath, who reverse-swept his way to 26 AFP
Herath fell to the reverse sweep and Dilruwan was cleaned up by a Starc yorker for 64 as Sri Lanka were dismissed for 237 AFP
Herath followed his hat-trick in the first innings with the early wicket of Joe Burns in the second innings AFP
Dilruwan got rid of Nathan Lyon, the nightwatchman, and Usman Khawaja off successive balls as Australia closed the day at 25 for 3 in a chase of 413 Associated Press