India seized control of the decisive third Test with Sri Lanka in Colombo, only for a courageous home fightback to leave proceedings intriguingly poised at the end of day three.

After levelling the three-match series last time out in Kumar Sangakkara's final Test, India looked set to coast to another win when they reduced Sri Lanka to 48-6 in reply to 312 all out, thanks largely to Ishant Sharma (5-54) and Stuart Binny (2-24).

Dhammika Prasad subsequently retired hurt after being struck on the left hand. However, Test debutant Kusal Perera and the more experienced figure of Rangana Herath contributed 55 and 49 respectively, while Prasad returned to reach 27 as the hosts battled to 201 all out.

Boasting a first-innings lead of 111, India then slumped to 21-3 before rain forced a premature close, with Prasad (1-8) ousting first-innings centurion Cheteshwar Pujara for a duck and Nuwan Pradeep (2-6) getting rid of Lokesh Rahul (2) and Ajinkya Rahane (4).

On a day that saw 15 wickets fall, Pujara had earlier become only the fourth India player to carry their bat through an innings, finishing unbeaten with 145 as his side added 20 to their overnight total of 292-8.

Herath claimed the two remaining wickets, bowling Ishant and Umesh Yadav to finish with 3-84, yet it was not long before Sri Lanka were firmly on the back foot due to a flurry of wickets.

Openers Upul Tharanga and Kaushal Silva failed to reach double figures, prior to Binny trapping Dinesh Chandimal lbw for 23.

That left Sri Lanka 40-3 and worse was to follow as they lost three batsmen in as many overs, Ishant accounting for Angelo Mathews (1) and Lahriu Thirimanne (0) either side of Dimuth Karunaratne (11) falling to Binny.

Ishant immediately struck another blow, a bouncer striking Prasad on the left glove and forcing the batsman to retire hurt after a solitary ball.

However, Perera and Herath responded superbly with a counter-attacking partnership of 81, the former's debut half-century coming from just 49 deliveries.

And although Ishant completed his five-for by removing Perera and Herath, Prasad returned to add valuable runs as Sri Lanka unexpectedly made it beyond 200.

With his left hand heavily bandaged, Prasad then made a significant impact with the ball, cleaning up Pujara with the second delivery of India's second innings.

Rahul soon followed, bowled when leaving for the second time in the Test, and Pradeep trapped Rahane lbw to further raise Sri Lankan hopes ahead of day four, which will begin with Virat Kohli (1) and Rohit Sharma (14) at the crease.