Australia built up a commanding 407-run lead in the second Test in Hobart after bowling out Sri Lanka for 246.
Brett Lee was the spearhead for the Australian attack as Sri Lanka faced the daunting task of replying to another huge Australian innings of 542-5 declared.
Lee took 4-82 while Stuart Clark and Stuart MacGill took two wickets each to bowl the tourists out for just 246, despite the best efforts of skipper Mahela Jayawardene who hit a century.
Skipper Ricky Ponting declined the chance to enforce the follow on, and Australia lost just Matthew Hayden before they closed the day on 111-1 and well in sight of another emphatic victory.
Starting the day on 30-0, Sri Lanka lost both openers quickly as Lee got rid of Michael Vandort for 14 and Marvan Atapattu for 25.
Kumar Sangakkara and Jayawardene added 73 for the third wicket, before left-armer Mitchell Johnson got his one wicket of the innings by ending Sangakkara's knock on 57.
MacGill then struck with two quick wickets of his own as Sri Lanka's middle order collapsed with four wickets going down for just 36 runs.
Farveez Maharoof made 19 before he was run out to help add 33 alongside skipper Jayawardene, but he was running out of partners as he single-handedly tried to rescue the innings.
Jayawardene and paceman Lasith Malinga added 36 runs for the ninth wicket, although the Sri Lankan bowler contributed just a single in that partnership.
It was enough to see Jayawardene reach his century though, and he was the last man out as Lee grabbed his fourth wicket and aptly wrapped up the innings with the Sri Lanka captain scoring a defiant 104 from 194 balls.
Muttiah Muralitharan crept even closer to Shane Warne's Test wicket record as he trapped Aussie opener Hayden lbw for 33 as skipper Ricky Ponting decided against enforcing the follow on.
Phil Jaques maintained his fine form as he reached another half century as he ended the day unbeaten on 53 alongside Ponting on seven.
A lead of 407 runs heading into just the fourth day sees Australia well on top again and looking odds-on to record another crushing victory.