A measure of Australian business activity rebounded in December as Christmas demand helped the down-beaten retail sector, a survey showed on Tuesday, though confidence remained poor as firms faced rising costs.

Australian business conditions — which measure jobs, sales and profitability — advanced in December, driven by the retail sector as consumer spending picked up while price pressures eased.

Travis Head will replace Sam Konstas as Usman Khawaja's opening partner in the first test against Sri Lanka at Galle on Wednesday, Australia's stand-in captain Steve Smith said on the eve of the match.

Australia are coming off a really strong Test match series victory over India, so they'll be confident of keeping the good times going in Sri Lanka. Of course, playing away from home is always a challenge.

Travis Head will open the batting for Australia in the first Test against Sri Lanka in Galle, leaving Sam Konstas in a battle for a middle order position to save his spot in the side.