Australia have been ripped out for their lowest ever score against Sri Lanka after a dramatic morning in Galle that has all but confirmed they will relinquish their world No.1 Test ranking.
The visitors lost their last nine wickets for just 52 runs - eight of which came this morning - to be dismissed for just 106 in reply to SL's first innings of 281.
Unsurprisingly, it was spin that did the damage for the home side. Veteran left-armer Rangana Herath took 4-35 - including a hat-trick - while off-spinner Dilruwan Perera grabbed 4-29.
It's only the third time Australia have been bowled out for less than 150 in the first innings of a Test in Asia and they would need to produce an incredible comeback if they are to avoid a series defeat.
Resuming on 2-54, the tourists lost not out batsmen Usman Khawaja in consecutive deliveries to give the hosts a dream start to the day.
Khawaja (11) and Smith (5) were both bowled when they played back to a delivery that continued on with the arm, despite the skipper's pre-match warning about the dangerous straight balls from the home side's spinners.
Having removed Smith, Herath then ripped the heart out of Australia's middle order by removing Adam Voges, Peter Nevill and Mitchell Starc to become just the second Sri Lankan to take a Test hat-trick.
With the innings nearing an end, Mitchell Marsh hit out by lofting three towering sixes to at least push his team's total beyond the 100 mark.
But Marsh was the final wicket to fall for 27, caught on the boundary attempting another maximum, as the home side carried a 175-run lead into the second innings. (Cricket.com. au)