Australia lost their last nine wickets for just 52 runs - eight of which came this morning - to be dismissed for just 106 in reply to Sri Lanks’s first innings of 281.

Sri Lankan left-armer Rangana Herath took 4-35 - including a hat-trick - while off-spinner Dilruwan Perera grabbed 4-29.

It's only the third time Australia have been bowled out for less than 150 in the first innings of a Test in Asia.

They need to conjure an incredible comeback if they are to avoid a series defeat.

Resuming on 2-54 Australia was woeful.

Khawaja (11) and Smith (5) told the tale of a tough day for the Australians.  

The home side carried a 175-run lead into the second innings.