New Zealand, trailing by 26 runs on the first innings, were bowled out for 118 in their second innings after lunch on the third day of the opening Test against Sri Lanka in Galle.
It left Sri Lanka needing 93 runs to gain a 1-0 lead in the two-Test series.
Middle-order batsman Daniel Flynn top-scored for New Zealand with 20, while Sri Lankan left-arm spinner Rangana Herath finished with 6-43.
Sri Lanka were bowled out for 247 in their first innings on Sunday in reply to New Zealand’s 221.