Sri Lanka self-destructed on day three at the Sydney Cricket Ground when a breakthrough test win in Australia was in the offing.
The tourists overcame a brilliant Matt Wade century to be well positioned to set Australia a challenging fourth innings chase and push for a massive boilover in the third test. But they suffered an embarrassing second-innings capitulation in the final session to be 225 for seven at stumps.
Much is needed from remaining batsman Dinesh Chandimal if the Sri Lankans are to make something of their lead of 87.
A series sweep for Australia and a winning farewell for retiring great Mike Hussey now appear a simple matter of time.
The Australians were under pressure at tea despite declaring at 432 for nine half an hour before lunch for a first-innings lead of 138. Sri Lankan batsmen Mahela Jayawardene (60) and Dimuth Karunaratne (85) played brilliantly to combine for 108, virtually eroding the deficit.