Samaraweera leads the recovery
Thilan Samaraweera (76 not out) and Suraj Randiv (34 not out) put on a vital undefeated 97-run stand for the seventh wicket as the home side recovered from a middle-order collapse.
Sri Lanka closed the third day on 225-6, trailing New Zealand by 187 runs, having earlier been 128-6.
Resuming on 43-3, Sri Lanka made a solid start to the day, but Paranavitana (40) and Mathews (47) fell to Tim Southee?s impressive bowling in the space of two overs.
When Jayawatrdene fell to Jeetan Patel for 12, Sri Lanka was in all kinds of trouble, but a brilliant seventh wicket partnership helped the home side avoid the follow on.
Tim Southee finished the day with 4-51 on an another outstanding day for the young bowler.