The Aussies have lost their No.1 Test ranking after Sri Lanka sealed a 3-0 series clean sweep in Colombo last night.
Sri Lanka won the third Test by 163 runs, to end a horrific tour for Australia.
After being set 224 runs to win, Australia looked to be in a good position at 1-100, before another shocking batting collapse, saw them lose 9-60, to be all out for 160 runs in their second innings on day five.
Opener David Warner top scored with 68, but from there on, there was little resistance form the tourists.
India have now reclaimed the No.1 rankings, while Australia has dropped to third.
Australia's next Test series is at home against South Africa, which begins in November.