Fast-bowler Josh Hazlewood and off-spinner Nathan Lyon shared six wickets, while Mitchell Starc and Steve O’Keefe picked up two apiece as the hosts were shot out shortly after lunch.
Debutant all-rounder Dhananjaya de Silva (24) was the top scorer for Sri Lanka, who have lost their last two Test series in New Zealand and England.
Earlier, Sri Lanka captain Angelo Mathews had won the toss and had no hesitation in opting to bat on a dry pitch in the first match of the three-Test series.
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Any hopes Mathews had of enjoying a strong start were soon shattered, however, after Australia pace duo Hazlewood and Mitchell Starc ensured the tourists took full control with the new ball by reducing the hosts to 18-3 inside 10 overs.
Left-armer Starc, making his comeback after a long injury layoff, sent back Dimuth Karunaratne, with the opening batsman failing to get the umpire’s leg before wicket verdict overturned on review.
25-year-old Hazlewood, bowling an impeccable line and length, dismissed Kusal Mendis and Kaushal Silva and returned for another spell before lunch to lure Dinesh Chandimal into an edge behind to wicketkeeper Peter Nevill.
Left-arm spinner Steve O’Keefe, who was included alongside Lyon, was brought on in the ninth over by Australia captain Steve Smith and he was rewarded when he dismissed Mathews.
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Lyon found a lot of turn from the surface and picked up his three wickets from just seven deliveries after the lunch interval as Sri Lanka’s batsman appeared keen to return to the pavilion as quickly as they departed it.
Rangana Herath became Starc’s second victim and Australia’s ninth after Smith successfully overturned the umpire’s ‘not out’ decision for leg before on review.
O’Keefe finished off proceedings when he captured his second wicket of the innings with the removal of Nuwan Pradeep.
Injury-ravaged Sri Lanka, ranked seventh in the world, also handed a debut to left-arm slow bowler Lakshan Sandakan against the world’s top-ranked Test side, who have won just one out of their last 15 Tests in Asia.
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