Fierce bowling from a revitalised Mitchell Johnson powered Australia to victory by an innings and 201 runs against Sri Lanka in the ‘Boxing Day Test’ that ended inside three days at the MCG.

Johnson - after being left stranded eight short of a second Test century earlier in the day when Australia were dismissed for 460 in reply to Sri Lanka's first-innings 156 - captured two for 16, injured two top-order batsmen and affected a run-out as the tourists were skittled for 103.

Sri Lanka had lost seven wickets midway through day three's second session but, with Prasanna Jayawardene and Chanaka Welagedara unable to bat, and Kumar Sangakkara unable to return having retired hurt on 27, the Australians were home and dry.

The trouncing meant Australia retained the Warne-Muralitharan Trophy, with the third fixture in Sydney to start next week.

Johnson's brilliant second-innings effort capped a remarkable Test for the rejuvenated 31-year-old.

The left-armer claimed four for 63 - including his 200th victim - in Sri Lanka's first innings before boosting his reputation as a lower-order batsman with an unbeaten 92 in Australia's reply.