Hussain, who missed the drawn first match of the three-Test series, has recovered from a virus.

Giles, England's best player in Galle with a Test-best eight-wicket haul and a match-saving innings, is recovering after a similar throat infection while Anderson is back bowling at full pace after an ankle ligament injury also ruled him out of the opening test.

"Nasser has declared himself fit and he will therefore bat at number four," Vaughan told reporters after a training session in the hill-country capital.

"Ashley is not a problem anymore and Jimmy has had a good workout today and is available for selection."

With Hussain back, England will either have to drop Paul Collingwood, who helped save the first Test with a back-to-the-wall 36, or drop one of their pace bowlers.

"We might go in with six batters but will have to work out the right formula for the wicket," Vaughan said.

"The pitch looks like it may be slower than last time (in 2001) and may help the spinners more."

If England retain the same balance they had in Galle, they will then have to decide whether to play two or three spinners. Kandy has a reputation for assisting seamers.

Anderson is short of match practice but Matthew Hoggard and Richard Johnson managed only two wickets between them in the first Test.

Vaughan felt his side had snatched a psychological advantage by saving the opening Test.

"It was very important that we got out of that game," said Vaughan. "If you lose the first Test of a three-match series you're really fighting to win the series.

"The guys will take great heart from the way we played down in Galle."

Vaughan argued Sri Lanka, although very experienced, remained vulnerable.

"If you are able to put them under pressure, and you can take them close in the fourth and fifth days, then they are a team that can fold."

Hashan Tillakaratne, Sri Lanka's captain, disagreed.

"We are not babes," he told reporters. "We have experienced players in the side with well over 50 caps under their belt and they know how to soak up pressure."

"Lots of positives came out of the last match but, although we played well, this is a new game and we cannot be complacent."

"There are still some things that we need to improve upon...such as the top getting big runs rather than 30s or 40s."

Sri Lanka are expected to drop one of their spinners to make way for a batsman, either Tillakaratne Dilshan or Michael Vandort. Fast bowler Dilhara Fernando could also replace Dinusha Fernando.