The West Indies put on 129 runs and lost three wickets in the extended morning session after resuming at 95 for one after the rain-shortened first day.
Lara added a further 60 runs to his overnight score before he was undone by Nathan Astle, and his dismissal was followed by the run-out of Shivnarine Chanderpaul in bizarre circumstances with the West Indies captain and Runako Morton at the same end.
Morton at lunch was unbeaten on 49, a run short of his second half-century in consecutive Tests, with Dwayne Bravo on 12.
Daren Ganga was the first wicket to fall in the morning, bowled by a full length Shane Bond delivery for 30.
Lara, who struggled in his previous four innings on tour, rediscovered his classic, flowing stroke-play and was marching towards his century when the gremlins struck again.
He went to pull Astle, but a bottom-edge cannoned into his legs then onto the stumps.
He departed McLean Park with a standing ovation after his 107 ball stand which included 12 boundaries.
Chanderpaul was on two when Morton guided a shot to mid-off and set off for what should have been a comfortable single, until Chanderpaul backpedalled and both ground their bats at the bowler's end when Daniel Vettori broke the stumps at the other end.
A visibly angry Morton slammed his bat into the ground and started to walk when he was initially given out.
But, after a lengthy deliberation and numerous television replays, Chanderpaul was ruled to have grounded his bat too late.