A legal row has emerged between Sri Lanka’s top cricketers and the country’s Inland Revenue Department (IRD), centring on whether the players are to be regarded as employees of Sri Lanka Cricket (SLC) or independent professionals.
Despite being centrally contracted by SLC—with monthly salaries and extensive benefits—the players insist they are not employees of the board. In March, a group of leading cricketers filed a petition in the Sri Lankan High Court challenging the IRD’s classification of them as SLC employees for tax purposes.
The petition was filed by men’s ODI and T20I captain Charith Asalanka, Test skipper Dhananjaya de Silva, women’s captain Chamari Athapaththu, and wicketkeeper Anushka Sanjeewani. Interestingly, Sri Lanka Cricket itself supported the players’ stance in court.
Under the IRD’s interpretation of the law, cricketers are considered employees of the state-run cricket board and must pay taxes accordingly. However, the players argue that their relationship with SLC is contractual and does not equate to traditional government employment.
A preliminary hearing was held this week, where the court brokered a temporary compromise. From this month onwards, the cricketers will begin paying taxes on an individual basis. Should the final verdict go against them, however, they will be required to pay the difference for the months affected.
Final hearings have been scheduled for 6, 14, and 18 November, when the court is expected to deliver a definitive ruling on whether the players are self-employed professionals or salaried employees of Sri Lanka Cricket.