Australia lost their top World Test Championship position to South Africa Tuesday after they were defeated by Sri Lanka in the second match of their series.
The island nation completed a stunning innings and 39-run victory over captain Pat Cummins' Australia in Galle on Monday to end the two-match series level at 1-1.
Africa take over as the new leader on the latest standings with a win-loss percentage of 71.43 percent, while Australia drop to second with 70 percent after their first Test loss in the current period," the International Cricket Council said.
"Sri Lanka are now firmly in the mix for the World Test Championship final next year, with their win helping them jump in front of Pakistan, India and West Indies."
Sri Lankan spinner Prabath Jayasuriya had a dream debut with a match haul of 12 wickets and veteran batsman Dinesh Chandimal stood out with an unbeaten 206 -- his maiden Test double ton.
Cummins termed the loss a "reality check" for a team that won the opener inside three days but were then bundled out on the fourth day of the second match.
"The reality is some of our players haven't been here before. So you could call it a reality check, because it's a first experience," Australian coach Andrew McDonald said, agreeing with the skipper.