Stephen O'Keefe has been confirmed in Australia's XI for the first Test against Sri Lanka, starting in Kandy on Tuesday.

At a press conference on Monday at Pallekele Stadium, Australia's captain Steve Smith announced the left-arm finger spinner will play alongside right-arm off-spinner Nathan Lyon given the dry state of the wicket.

Smith said given some grass was taken off the pitch, it is expected to turn relatively early in the game which prompted the inclusion of O'Keefe ahead of fast bowler Jackson Bird.

O'Keefe will step out for just his third Test, having played in a two-pronged spin attack with fellow New South Welshman Lyon against Pakistan in the UAE in 2014 and also in the rain-ruined third Test against the West Indies in Sydney in January.

The 31-year-old made a strong case for a Test call-up in last week's tour match against a Sri Lankan Board XI in Colombo where he took match figures of 10 for 64 and made an unbeaten 78.

O'Keefe's selection means all-rounder Mitch Marsh will carry a heavier workload with the ball as Australia's third seamer behind new-ball pair Mitchell Starc and Josh Hazlewood.

The dry state of the pitch means reverse swing is likely to play a big role along with spin as the ball wears faster, although in only four previous Tests at Pallekele there has been some movement in the air with the new ball.

(AAP)