Australia is edging towards a 2-0 series sweep over Sri Lanka after Alex Carey's breathtaking century propelled the visitors into a formidable position in the second test.

Steve Smith and Alex Carey powered Australia to a formidable 414 all out Saturday in their first innings of the second test against Sri Lanka in Galle.

Dimuth Karunaratne strode to the crease to start his 100th and last test match after Sri Lanka won the toss and elected to bat against Australia.

Australia put on a clinical display on the third day of the second test against Sri Lanka, leaving the hosts teetering at 211-8 and holding a slender lead of just 54 runs. The visitors will try to wrap up the Sri Lankan innings early on the fourth morning and chase down the target in a bid to complete a 2-0 series sweep.