Australia close in on hosts' total

Australia made steady progress on the second morning of the second Test in Kandy as they sought a first-innings lead over Sri Lanka.

Having bowled the home side out for 174 and closed on 60 without loss in reply, Australia would have been hoping to strengthen their position further today.

And, despite losing three wickets during the morning session, they found themselves just 41 runs behind at the interval.

They suffered an early setback, though, when all-rounder Shane Watson was dismissed from the 10th ball of the morning for 36, shouldering arms to a Suranga Lakmal delivery which nipped back and clipped off stump.

Shaun Marsh and Phil Hughes (36) prevented further inroads with a cautious stand of 35 from 17 overs before the latter fell victim to a fine bat-pad catch from Tharanga Paranavitana off the bowling of Suraj Randiv.

Australia skipper Michael Clarke managed just 13 before wafting at a wide ball from Chanaka Welegedara, with Mahela Jayawardene taking the catch in the slips.

Marsh (26no) and Mike Hussey (15no) saw Australia through to lunch on 133 for three with no further scares.