(Updates with result)
* Australia seal series 2-0
* Sangakkara retires hurt
MELBOURNE, Dec 28 (Reuters) - Australia humiliated Sri Lanka by an innings and 201 runs to win the second test before tea on day three at the Melbourne Cricket Ground on Friday, and seal their three-match series 2-0.
Needing 305 runs to make Australia bat again, Sri Lanka surrendered after adding only 103 in their second innings, with a top order collapse and a raft of injuries cutting the match short.
After bowling Australia out for 460 in the first hour, Sri Lanka staggered to lunch at 43-4 and lasted less than 12 overs after the interval.
Sri Lanka lost Kumar Sangakkara to injury after lunch when he retired hurt on 27 after being struck on the glove by a searing delivery from man-of-the-match Mitchell Johnson.
With seamer Chanaka Welegedara and wicketkeeper Prasanna Jayawardene absent injured, pacemen Johnson and Peter Siddle, and spinner Nathan Lyon shared the remaining three wickets to wrap up the match early and render next week's third and final test in Sydney a dead rubber.
Angelo Mathews held firm to top-score for Sri Lanka with 35, but lived dangerously and was out bowled by Johnson when attempting a hook that rebounded onto the stumps.
Dhammika Prasad struck two successive sixes off Lyon but was caught at cover by Phillip Hughes for 17 on the next ball.
Siddle clinched the winning wicket by having Shaminda Eranga caught by Ed Cowan for a duck.
After dismissing Australia before lunch, Sri Lanka lost three wickets in the first 12 balls of their innings, and a fourth less than four overs later to leave Sangakkara and all-rounder Mathews fighting a virtually hopeless cause.
Australia lost their last two wickets for the addition of 20 runs in the first hour, leaving Mitchell Johnson stranded on 92, but the mercurial paceman was consoled with a direct hand in the first two Sri Lanka wickets.
A horrible misunderstanding between openers Dimuth Karunaratne and Tillakaratne Dilshan led to the former run out for one on the third ball of the innings.
Karunaratne pushed the ball to the off side for a single but the pair changed their minds about a second run, allowing David Warner to flick the ball to Johnson who dived to throw the stumps down from point-blank range.
Dilshan was gone for a first-ball duck with the next delivery off Johnson when he tried to fend off a short delivery, only to flick an edge onto his thigh pad that rebounded for a simple catch to Cowan at short leg.
Sri Lanka captain Mahela Jayawardene was heading back to the dressing room for a duck in the next over, shaping to leave the ball but playing onto his stumps to give debutant Jackson Bird his first wicket of the morning.
The 26-year-old seamer struck again in the sixth over of the day, trapping Thilan Samaraweera lbw.
The batsmen called for a review of the decision but the video system showed the ball clattering into leg stump.
Mathews earlier removed Nathan Lyon for one, while Shaminda Eranga wound up the Australian innings by bowling Bird for a duck, frustrating Johnson's bid for a second test century.
UPDATE 3-Cricket-Australia thrash Sri Lanka to seal series
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UPDATE 3-Cricket-Australia thrash Sri Lanka to seal series
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UPDATE 3-Cricket-Australia thrash Sri Lanka to seal series
