Angelo Mathews fell after his half-century but Dinesh Chandimal's unbeaten 63 kept Sri Lanka on course to eclipse Australia's first innings total of 364 on day three of the second test in Galle on Sunday.
The hosts were 327-4 when rain forced an early tea, with Kamindu Mendis, batting on 24, giving company to Chandimal.
Australia's Nathan Lyon extracted sharp turn from the track and one of his deliveries spun significantly from outside the off-stump to rap overnight batsman Kusal Mendis (85) on his pad.
The batsman reviewed the lbw decision but could not get it overturned.
Chandimal attacked soon after his arrival, hitting Lyon to the boundary through cover and followed it by smashing the off-spinner over his head for six.
Chandimal and Mathews (52) added 83 runs before Mitchell Starc struck after the lunch break.
Mathews struggled against spin but succumbed to pace, offering a bat-pad catch to Marnus Labuschagne at short leg.
Chandimal got a life on 30 when he edged Starc but umpire Kumar Dharmasena turned down Australia's appeal for a catch.
Replays confirmed the bat-ball contact but Australia had used up all three reviews in the morning session itself and could not challenge it.
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