Hosts Sri Lanka gained the upper hand in their first Test against New Zealand as they finished Day III at 237/4 to lead by 202 runs with six wickets in hand.

Half-centuries from former captains Dimuth Karunaratne (83) and Dinesh Chandimal (61) steadied the Sri Lankan innings after Pathum Nissanka fell cheaply in the third over.

The two seasoned players navigated challenging moments on a pitch that is getting increasingly difficult to bat on, with the ball spinning and bouncing as it typically does in Galle.

The second-wicket partnership between Chandimal and Karunaratne was worth 147 runs and could prove crucial to the match. While Sri Lanka's batters handled spin well, they struggled against pace. They had already succumbed to right-arm quick William O'Rourke in the first innings, and he was again in the thick of it, finishing the day with three wickets in the second innings.

Ajaz Patel made the breakthrough by cleaning up Karunaratne. O'Rourke then had Chandimal caught at leg slip in the next over and followed it up by dismissing first innings centurion Kamindu Mendis, who, like Nissanka, was caught at slip. Both batters were troubled by the extra bounce generated by O'Rourke.

Captain Dhananjaya de Silva and Angelo Mathews were involved in an unfinished 59-run stand for the fifth wicket.

Play began 15 minutes early on Friday to make up for lost time due to rain, with Daryl Mitchell posting a half-century alongside Tom Latham and Kane Williamson. Mitchell batted well for his 57, but his run-out shifted momentum away from New Zealand. Glen Phillips played aggressively, smashing 49 off 48 balls.

Saturday will be a rest day as Sri Lanka prepares for the Presidential polls.

Brief scores: Sri Lanka 305 & 237/4 (Dimuth Karunaratne 83, Dinesh Chandimal 61; William O'Rourke 3/37). New Zealand 340. At stumps, Day III.