A group of Sri Lanka’s top national cricketers, including both men’s and women’s team members, have filed a legal case against the Department of Inland Revenue (IRD) and Sri Lanka Cricket (SLC), contesting how they are taxed under national law.
Cricketers challenge employee classification in court
The legal action, filed in Sri Lanka’s Court of Appeal in March, seeks to redefine the tax status of cricketers from “employees” to “individual service providers”. Players argue this distinction better reflects their contractual relationship with SLC and would significantly alter how personal income tax is calculated and deducted.
Among those listed in the petition are prominent names such as Dhananjaya de Silva, Charith Asalanka, Chamari Athapaththu, and Anushka Sanjeewani.
The cricketers claim that although they sign agreements with the national board, their work and income structures are closer to those of independent contractors rather than salaried employees.
Sri Lanka Cricket supports players, Inland Revenue pushes back
In an unusual show of unity, Sri Lanka Cricket’s legal team has publicly backed the players’ legal stance. However, the Solicitor General’s Department, which is representing the IRD, argues that players meet the legal definition of employees once they enter into formal contracts with the board. Therefore, they fall under the standard provisions of the Inland Revenue Act.
Interim tax arrangement reached pending full hearing
Following a court session held earlier this week, both parties agreed to an interim arrangement while awaiting a final decision.
- Starting in June, the IRD will begin deducting Advance Personal Income Tax (APIT) from cricketers’ earnings.
- However, no efforts will be made to recover APIT payments for the 2022/23 and 2023/24 fiscal years until the court case concludes.
The case has been scheduled for further hearings on November 6, 14, and 18.
Case could set precedent for athlete taxation in Sri Lanka
The outcome of this case may redefine how athletes are taxed in Sri Lanka and could have wider implications for other sectors involving gig workers or contractors. At the heart of the legal argument is a fundamental question: Should national cricketers, who represent Sri Lanka on the global stage, be taxed like salaried state employees or treated as independent professionals?
With the legal backing of SLC and the involvement of high-profile players, the November hearings are expected to attract widespread attention from both the sporting and legal communities in the country.
