Ajinkya Rahane (36) was the only Indian batsman to provide some resistance but he too fell to Herath, edging the wily spinner to home captain Angelo Mathews at slip.
Sri Lanka looked dead and buried on 95-5 on Friday after conceding a first-innings lead of 192 but Dinesh Chandimal's swashbuckling unbeaten 162 allowed them to stage a fightback and set India a victory target of 176.
"What an absolute turnaround it was," home captain Angelo Mathews said at the presentation ceremony. "I thought Chandimal was outstanding. He single-handedly got us a fighting score.
"We were down and out for past three and half days and we had to give it our best shot."
The hosts, who lost their last Test series at home to Pakistan, put immense pressure on India with tight bowling and some smart catches in the first session on Saturday.
India failed to find scoring opportunities, with first-innings centurion Shikhar Dhawan, unbeaten on 13 overninght, taking 36 balls to score his first run in the morning.
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