The hosts, chasing a mammoth 550 for a win, only managed 245 runs before their second innings folded in the final session of the penultimate day after Dimuth Karunaratne had been dismissed for 97.
Cheteshwar Pujara set a few records during his unbeaten ton.
It was a vastly improved effort on the home side's first innings score of 135, as they chase down England's first innings total of 421.
Dinesh Chandimal smashed his second half-century of the match to put Sri Lanka in the box seat in the opening Test against Pakistan in Galle on Monday.
Opening batsman Shikhar Dhawan has been ruled out of the rest of the Sri Lanka Test series following the injury to his right hand.
Chasing 164 to win, opener Zak Crawley was dismissed in the second session before Dom Sibley and Jos Buttler took the hosts to victory.
Images from Day 1 of the first Test between Sri Lanka and India in Colombo, on Thursday.
Australia are on the cusp of a series victory in Sri Lanka and captain Pat Cummins believes the exposure to sub-continental conditions augurs well for their next big target of winning a Test series in India next year.
Babar Azam's side had been in charge after claiming a handy first-innings lead of 149 in the first match of the two-Test series.
The Australian newspaper reported on Saturday the documentary will allege spot-fixers bribed the groundsman at Galle to doctor the pitch used for the 2016 second Test between hosts Sri Lanka and Australia.
Bowlers put their foot on the pedal after a flamboyant innings from debutant Hardik Pandya enabling India to be in firm control of the proceedings in the first Test against Sri Lanka, in Galle.
England resumed the day on 98 for two having lost their openers cheaply for the third time in as many innings this series.
Shafique and Salman pummel Sri Lanka, Pakistan eye series sweep
Dhananjaya de Silva and Angelo Mathews helped Sri Lanka to overcome a top-order collapse and reach 242-6 on Day one
New Zealand were bowled out for 249 in the first session but Sri Lanka struggled to get going during Patel's spells and finished on 227-7, trailing by 22 runs.
'He never had a negative thought in his mind, he was supremely confident.' 'He always stuck to his natural game, he never moved away from that.'
Batsman Chandimal suffered a tear in his groin on day one of the first Test in Galle and is also a doubt for the final Test in Colombo, which begins on November 23.
Australia spinner Steve O'Keefe will return home from the ongoing tour of Sri Lanka after injuring his hamstring during the first Test in Pallekele.
'All you need is that players are in the frame of mind so that they can be at their best. After you take the field, you are expected to take over and adapt to situations'
India have posted 6 of the 7 600+ totals posted in Test cricket this year!
England's two-match Test series in Sri Lanka starting next week has been postponed due to the coronavirus pandemic, the England and Wales Cricket Board (ECB) said on Friday. The first Test was scheduled to start in Galle on March 19 and the second game set for Colombo from March 27.
Pakistan completed a 2-0 series sweep against Sri Lanka after left-arm spinner Noman Ali bowled the tourists to a comprehensive victory by an innings and 222 runs in the second Test.
Steve Smith ended his century drought and Marnus Labuschagne struck his first Test hundred abroad to steer Australia to 298/5 on day one of the second Test against Sri Lanka in Galle on Friday.
England were reeling at 89-4 when Buttler somewhat steadied the innings before Curran clobbered six sixes in his blistering 64 to help them to a competitive score.
Uganda produced wonders in the ICC Men's T20 World Cup Africa Region Qualifier last November
Sri Lanka suffered a fresh blow due to injury after pace spearhead Nuwan Pradeep was ruled out of the remainder of the ongoing Test series against India in Colombo on Friday.
Australia bundled out Sri Lanka for 212 but endured a top order wobble of their own before reaching 98/3 in reply after a frenetic, spin-dominated day one of the opening Test in Galle on Wednesday.
Sri Lanka fast bowler Lasith Malinga has been included in the 16-member squad for the three-Test series against India, starting at Galle on July 18. He made his last Test appearance in December 2007 against England.
Dinesh Chandimal smashed 118 not out and Kamindu Mendis produced a half-century in his debut Test to help Sri Lanka eclipse Australia's first innings 364 on day three of the second Test in Galle on Sunday.
Smith said England's batters may not fare so well against the Australian bowling attack
Virender Sehwag smashed a brilliant 128, but the loss of four quick wickets saw India end Day 1 on 214 for 4, in the second Test against Sri Lanka in Galle.
Skipper Virat Kohli and his Indian team maintained their respective top positions in the latest ICC Test rankings published on Thursday.
Ollie Pope embodied England's 'Bazball' making a 196 filled with sweeps, reverse sweeps and reverse scoops during the first Test, and India head coach Rahul Dravid admitted they will have to counter the unorthodox approach to make a comeback into the series.
Saud Shakeel's career-best 208 not out fetched Pakistan a significant first-innings lead of 149
Shakib back in Bangladesh fold, Mashrafe out of ODI mix.
Hafeez had already been reported twice for illegal action and was suspended both times.
Pakistan finished Day 4 on 222/3, needing 120 more to grab the lead in the two-Test series.
The heavy downpour in the morning had delayed the toss and it relented for a while only to start drizzling again, prompting the umpires to call off the day's play.
Cricket Australia is monitoring the situation in Sri Lanka ahead of the tour.
'Given that they are playing at home and will have full crowd support, India, who are in peak form and whose morale is high, will be the favourites.'