Sri Lanka cricket captains challenge player employment classification in Court

By Lakmal Sooriyagoda

Sri Lanka cricket ODI Captain Charith Asalanka and Test Cricket Captain Dhanajaya De Silva have filed writ petition before Court of Appeal challenging the classification of Sri Lanka’s national cricketers as employees of the national association, Sri Lanka Cricket (SLC) by the Inland Revenue Department (IRD).  

When the matter was taken up before the Court of Appeal, the writ petition was fixed for further support on March 28 by Court of Appeal (Acting President) Justice Mohammed Laffar and Justice K. Priyantha Fernando.   

The Petitioners filed the petition seeking for notice to quash the decision of the Inland Revenue Department and an interim order to suspend the decision of the IRD.  

The Petitioners file this application seeking judicial review on behalf of all national cricketers of Sri Lanka who are deeply affected by the alleged arbitrary and unlawful decisions of the RID and the actions of the SLC on categorizing national contracted cricketers as employees of SLC.  

A letter signed by 38 national cricketers, including players Wanindu Hasaranga, Angelo Mathews, Maheesh Theekshana, Pathum Nissanka, Kusal Mendis setting out the grievance and endorsing the Petitioners to seek appropriate legal redress on the unlawful classification was also placed before Court.   

On behalf of Petitioners, it was submitted that Sri Lanka’s cricketers have been historically treated as independent service providers and in fact they cannot be construed to be employees and from the first instance of adoption of contracts between SLC and players, national cricketers have been treated as independent service providers between the parties. It was submitted that the intention of the parties being a cricketer and SLC, at all times, was that the national cricketers were independent service providers to SLC and not employees.   

It was further submitted that as contracts with SLC are often only for twelve months, it is now the period of contract re-negotiation and the arbitrary change in classification plunges the national cricketers into uncertainty regarding their contracts and relevant statutory entitlements. It was submitted that the challenged decision also impacts cricketers who are attached to the Police, Army and other entities. It was further submitted that the national cricketers were not of the opinion that SLC should be burdened with having to provide statutory entitlements such as EPF and ETF or gratuity and were not seeking such entitlements. It was submitted to Court that the Players are not seeking to avoid paying any tax when in fact most of the cricketers have been paying their taxes through self-assessment over a period of time and that the Auditor General has also conceded that cricketers were Independent Service Providers and not employees.  

The Petitioners state that, in early February 2025, while the national contracted cricketers were on tour with Australia, the Petitioners and the national contracted cricketers were informed by SLC that the SLC had, at its Executive Committee meeting held on or around 17th of January 2025, resolved to categorize national contracted cricketers as employees.  
The Petitioner stated that through such categorization, the national contracted cricketers are employees, that the SLC would be implementing tax cuts including Advance Payment of Income Tax (APIT).  

The Petitioners stated that in the backdrop where both, the Auditor General, and an independent legal opinion confirm the position of national contracted cricketers as Independent Service Providers, and in a further context where SLC has always considered cricketers as Independent Service Providers, the decision of the IRD to classify cricketers otherwise, is ill-informed, untenable and baseless.  

Counsel Nishan Sydney Premathiratne appeared with Shenali Dias and Sidath Gajayanaka on the instructions of Gamindu Karunasena for the Petitioners, Charith Asalanka and Dhananjaya De Silva. President’s Counsel Kuvera de Soyza with Pasindu Bandara and Sajana de Soyza on the instructions of Sanjay Fonseka represented Sri Lanka Cricket. Deputy Solicitor General Manohara Jayasinghe appeared for the Inland Revenue Department.