Sri Lanka are trailing Australia by just eight runs at tea on day three of the third Test match in Sydney.
The tourists resumed their second innings on 18-0 after lunch, trailing the home side by 120 runs.
Dimuth Karunaratne is unbeaten on 83 runs and captain Mahela Jayawardene is 38 not out, as Sri Lanka have taken their score to 130-1.
Tillakaratne Dilshan was the only casualty for the visiting team in the afternoon session. He was dismissed for just five runs.