Australia off-spinner Nathan Lyon passed 550 Test wickets as he helped his side close in on victory in the second Test in Sri Lanka.

The tourists started the third day on 330-3 and were bowled out for 414, with Alex Carey scoring 156 and Steve Smith 131.

Prabath Jayasuriya took 5-151 as Australia secured a first- innings lead of 157.

Sri Lanka had a disappointing start to their second innings as Matthew Kuhnemann dismissed both openers, including Dimuth Karunaratne.

Karunaratne was playing in his final Test innings and, after scoring 14, walked off to a standing ovation.

The hosts were then reduced to 39-3, with Lyon’s dismissal of Chandimal giving him his 550th Test wicket.

The 37-year-old, who began his Test career began at Galle in 2011, became the third Australian to reach the milestone following Shane Warne (708) and Glenn McGrath (563).

Angelo Mathews put up his side’s main resistance but was another Lyon victim when he holed out to Beau Webster on 76.

Kusal Mendis reached 48 not out as Sri Lanka reached 211-8 at the close of play to lead by 54 with two second-innings wickets remaining.

Australia hold a 1-0 series lead in the two-Test contest after a convincing win in the opener.