A partnership of 94 between Kane Williamson and BJ Watling has helped New Zealand fight back and lead by 118 runs at stumps on day three of their second Test with Sri Lanka.

The visitors looked to be on their way to victory when they restricted the hosts to 183-5 at tea and trailed by just 48 runs, but Williamson (80*) and Watling (48*) dug deep.

Nuwan Pradeep was the most successful Sri Lankan bowler, as he took the wickets of Tom Latham, Hamish Rutherford and Jimmy Neesham, but he and his fellow bowlers ran out of steam in the final session and couldn't find the breakthrough.

Watling was particularly fluent in his innings and has hit six boundaries, in comparison to Williamson's gritty display which has seen him hit only three fours.

The pair will resume at the crease tomorrow morning, with Sri Lanka still favourites to level the series.