Having conceded a first innings deficit of 52, the Sri Lankans were 44-1 but lost six wickets for 60 in 16 overs.

Only Kumar Sangakkara defied the home attack, smashing eight fours in an unbeaten 63 from 97 deliveries.

Earlier, Muttiah Muralidaran claimed four wickets as Sri Lanka fought back to dismiss the New Zealanders for 206.

The home side began day two on 85-2 in reply to Sri Lanka's meagre 154, but lost Craig Cumming and Nathan Astle in the same Muralidaran over.

Chaminda Vaas then ousted Jacob Oram and Brendan McCullum in the same over.

However, skipper Stephen Fleming shared an important 75 for the seventh wicket with Daniel Vettori, who rode his luck to hit eight fours in a vital innings of 63 -- the best effort by a Kiwi batsman.

After Fleming departed for 48 in the 80th over, the final four wickets went for only 18 runs in six overs, Vettori last to fall, mistiming a lofted drive and skewing to Mahela Jayawardene who ran in from deep extra-cover.

The Sri Lankan second innings began in positive fashion when evergreen Sanath Jayasuriya launched Chris Martin for six in the second over.

However, the 36-year-old left-hander was out of his ground at the non-striker's end in the next over as Upul Tharanga's straight drive was deflected into the stumps by bowler Shane Bond.

Fleming then clung on to a slip catch above his head off Bond at the second attempt to remove Tharanga.