Ridiculously, Australia can take a first innings lead over Sri Lanka when the second cricket Test resumes in Kandy.

Despite being bowled out for 120 on the first day, Australia is poised to eke out an advantage over the wasteful home side at Asgiriya Stadium.

Sri Lanka will resume at 7-92 on the second day, with bowlers Chaminda Vaas and Nuwan Zoysa at the crease and Shane Warne in deadly form.

Warne already has 3-15 from eight overs and is spinning the ball sharply.

He was on a hat-trick at one stage on day one and took a wicket with his last ball of the day before stumps were called early due to bad light.

Australia, which lost its only Test to Sri Lanka at this ground five years ago, looked headed for another defeat after plunging to its lowest ever score against Sri Lanka.

But 120 could yet be enough to take a first innings lead after Sri Lanka's batsmen struggled against the pace of Michael Kasprowicz and then the spin of Warne.

Kasprowicz knocked over the top-order, taking 3-33, before Warne stepped in.

Earlier, Muttiah Muralitharan joined Warne and Courtney Walsh as the only bowlers to take 500 wickets in Test cricket.

Bowling on his home ground, Murali bowled Kasprowicz to reach the milestone.

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