Prabath Jayasuriya, one of the three debutants fielded after five COVID-19 cases in the Sri Lanka camp, claimed three wickets either side of the tea break but Australia appeared on course for a massive first innings total.
Smith was batting on 109 not out at stumps, his first century after a gap of 16 innings, which included 14 fours.
A century for Labuschagne. A century for Smith.A wonderful day for Australia #SLvAUS
— cricket.com.au (@cricketcomau) 1657279962000
Alex Carey was batting on 16 at the other end with Australia pressing for a 2-0 series sweep.
Earlier electing to bat, Australia lost David Warner (five) cheaply after the opener had his off-stump pegged back by an angling Kasun Rajitha delivery.
Usman Khawaja combined with Labuschagne in a 55-run stand to help Australia overcome the early loss.
Ramesh Mendis bowled Khawaja for 37 but suffered agony when he lured Labuschagne, then on 28, out of the crease but wicketkeeper Niroshan Dickwella could not collect the ball and effect a stumping.
On another occasion, the off-spinner induced a bottom-edge from Labuschagne which sneaked through Dickwella’s legs and raced to the boundary.
By the time Dickwella stumped Labuschagne off Jayasuriya, the batsman had notched up his first Test hundred on foreign soil, which included 12 fours.
The 134-run partnership between Labuschagne and Smith put Australia in a strong position but Jayasuriya struck again after the break.
The left-arm spinner bowled left-hander Travis Head for 12 and trapped all-rounder Cameron Green lbw for four.
Smith had little problems negotiating the turn and he brought up his hundred with a cover-driven boundary off Kasun Rajitha.
Jayasuriya, Kamindu Mendis and Maheesh Theekshana made their Test debut for Sri Lanka, who made four changes to the squad who were beaten inside three days in the series opener also in Galle.
Angelo Mathews, who was withdrawn after the first innings in the opening Test after Testing positive for COVID-19, returned to strengthen Sri Lanka’s bid for a series-levelling victory.
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