Australia could not make the most of their strong start and were bowled out for 364 on day two of the second test against Sri Lanka in Galle on Saturday.
Sri Lanka left-arm spinner Prabath Jayasuriya claimed 6-118 in his debut test as Australia added 66 runs to their overnight score before losing their last five wickets in the morning session.
Overnight batsman Steve Smith ran out of partners and remained unbeaten on 145, which included 16 fours.
Sri Lanka were eight for no loss at the lunch break with Dimuth Karunaratne (five) and Passum Nissanka (three) leading their reply.
Jayasuriya, one of the three debutants fielded after five COVID-19 cases in the Sri Lanka camp, struck early after Australia resumed the day on 298-5.
Alex Carey (28) perished trying to play a reverse sweep off Jayasuriya who had Mitchell Starc caught in the slip in his next over.
Kasun Rajitha removed Pat Cummins and Nathan Lyon became Jayasuriya's sixth victim.
Debutant spinner Maheesh Theeksana sent back Mitchell Swepson for his first wicket in test cricket as Australia folded inside the day's first session.