The tourists had built a lead of 86 by the time they were dismissed 30 minutes before tea on day two, having resumed at 2-66 with skipper Steve Smith and Usman Khawaja seemingly set for a big partnership.

But it wasn't to be, as the Sri Lankans, led by four wickets apiece by veteran left-arm finger spinner Rangana Herath and debutant left-arm wrist-spinner Lakshan Sandakan, stormed back into the contest after claiming 4-80 before lunch.

Adam Voges proved a calming influence in Australia's middle order, but his dismissal soon after a promising start denied the tourists another potential match-turning innings.

For the first time in their past eight Tests, not one of Australia's top four batsmen notched a first-innings half-century. Along with Voges, allrounder Mitch Marsh was also guilty of squandering a healthy start.

Despite the presence of veteran Herath, the hosts have an inexperienced bowling line-up. But their willingness to fight was on show, as they tried to take the ascendancy in front of a somewhat-modest home crowd.

The hustling Sandakan was impressive. He likes to push the ball through, but also boasts a hard to pick wrong-un - as Marsh discovered much to his own cost. The Sri Lankan tweaker shapes to be a major threat as the series progresses.

Paceman Josh Hazlewood predicted first-innings runs would be precious, so Australia's handy lead, particularly in lieu of how their opponents batted on day one, could ultimately prove to be pivotal.

The pitch, while taking some turn, had yet to show any signs of crumbling, giving batsmen on both teams some hope. However, Sri Lanka's second innings plans were dented when opener Kusal Perera, promoted from No.7, was trapped lbw just before rain started to fall on the cusp of tea. Play would later be abandoned for the day.

Australian captain Smith had wanted his men to be positive early in their innings. On Tuesday, he showed the right balance, but the decision to charge Sri Lanka's Herath on first ball was one he would have regretted after a disconcerting miss-hit resulted.

It was a waste of the good work he had done in helping to rebuild the innings after David Warner and Joe Burns fell early.

While Smith proved a major breakthrough, the hosts knew they needed more if they were to assert their dominance.

Herath obliged when he ripped a delivery into the pads of Khawaja, who was crease-bound and didn't even consider challenging the decision.

Suddenly under pressure, and with fieldsman around the bat hovering, the challenge was set for Australian batsmen Mitchell Marsh and Adam Voges.

Having been instructed by his captain to play his natural game, Marsh obliged, using his cover drive to best advantage. He was prepared to take on Herath and paceman Nuwan Pradeep, with his first 12 runs flowing from boundaries.

Voges survived a first-ball lbw scare when a straight Herath delivery was adjudged not out by umpire Richard Kettleborough, prompting a review. The West Australian was fortunate as television replays showed the ball would have clipped leg stump.

Initially happy to play more a sedate role, Voges and Marsh put on 50 off 97 balls. Soon after, when Marsh muscled a flighted delivery from off-spinner Dilruwan Perera through the covers, Australia took a first-innings lead.

It appeared at that stage the tourists would quickly build a strong lead, but an entertaining morning session proved to have even more to offer.

Marsh, looking set to amass a big innings, then fell to a superb delivery from Sandakan after being deceived by a clever wrong-un which pitched on off-stump and slightly spun away. Sandakan, rightfully, celebrated his maiden Test wicket.

Herath was again back in the action soon after when he lulled Peter Neville into trying to clear mid-on only for the ball to fall into the hands of Perera.

Sandakan, clearly feeling he belonged at the elite Test level, had Mitch Starc and Steve O'Keefe caught after lunch and completed Australia's innings demise when Nathan Lyon mistimed a sweep and was adjudged lbw.