England suffered arguably their worst day under Michael Vaughan's captaincy yesterday and will require a monumental effort to avoid an innings thrashing in the final Test.

Vaughan's team surrendered any interest in the series when a catastrophic collapse tumbled them to 81 all out.

After Sri Lanka declared for the third time in as many innings on this campaign (on 499 for eight), England were shot out in less than two-and-a-half hours for their lowest score on the subcontinent and also a low against Asian opposition in Test cricket.

Despite a three-hour stoppage for an afternoon downpour, the tourists also underwent the ignominy of following on before the close, which, due to bad light, came after just one Muttiah Muralitharan over.

"I can't think of many worse days," said Paul Collingwood, who top-scored with 29. "These kind of days hit you hard. They hurt."

Six wickets fell inside the opening 11 overs and the only reprieve came during a seventh-wicket alliance between Paul Collingwood and Ryan Sidebottom. The pair batted for 17 overs either side of the rain stoppage but were both dismissed in quick succession when play resumed. Once their 41-run share came to an end, the innings folded at a pace, with debutant Chanaka Welegedara striking twice.

"Sri Lanka came out and hit us pretty hard," said Collingwood. "We can't make excuses. So far we haven't been on the ball and somehow over the next two days we are going to have to show guts, determination, pride, passion, all these kind of words to salvage something from this game. If we can get a draw from here it will be a miraculous result."

England came into this historic Test believing momentum was good enough to seal just a second away success in 14 attempts since the 2005 Ashes. But asked to negotiate just 40 minutes before lunch, captain Vaughan was among four wickets to fall in the session.

England were disappointed with how they used the new ball and Sri Lanka showed them how things should be done with a clinical display.

Vaughan misjudged a delivery from Chaminda Vaas then Ian Bell was run out by Tillakaratne Dilshan's direct hit at the non-striker's end after Alastair Cook dropped to the off-side and initially called for a single.

Vaas, who earlier hit a destructive 90, was extracting plenty of movement both in the air and off the pitch and, after Cook edged short of the slip cordon, umpire Asad Rauf adjudged a thinner nick next ball. However, the best delivery was reserved for Kevin Pietersen, a bouncer which caused the batsman to jump and sway evasively was deemed to have brushed glove on its way through to wicketkeeper Prasanna Jayawardene.

Moments after the break, Ravi Bopara, who spent the morning off the field with a cut to his left hand, appeared impaired by the injury, unable to grip the bat properly as he lobbed to mid-on. Vaas then claimed his fourth wicketwhen Matt Prior was bowled by one which kept low.

Shortly after the resumption, Sidebottom inside-edged to short leg off Muttiah Murali-tharan while Welegedara accounted for Collingwood and Matthew Hoggard in the space of five balls.

The innings reached its conclusion in farcical manner when Monty Panesar was run out in a mix-up with Steve Harmison.

"We showed that there was something in the wicket," said Vaas, who plans to play one more year of Test before retirement. "When England bowled, they bowled here and there and negatively."