Supreme Court grants interim relief to cricketers in IRD case
The Supreme Court has granted interim relief to the country’s national cricket cricketers in their ongoing dispute with the Inland Revenue Department (IRD) over tax deductions, while setting an expeditious hearing schedule for November this year.
The landmark case, brought by men’s captains Charith Asalanka and Dhananjaya de Silva alongside women’s captains Chamari Athapaththu and Anushka Sanjeewani, centres on the controversial Advanced Personal Income Tax (APIT) deductions imposed on professional cricketers.
Under the interim settlement proposal agreed by the IRD and endorsed by the court, several key provisions have been established to protect the players’ interests while the matter proceeds. Most significantly, APIT deductions from players will commence from June, but these amounts can be offset against their personal tax payments. Should the court ultimately rule in favour of the cricketers, all deducted funds will be refunded.
The arrangement also provides substantial protection for Sri Lanka Cricket (SLC), with the court agreeing that while Notice of Assessments will be issued to the governing body, no recovery proceedings will be instituted against them. SLC has reserved its legal right to challenge these notices.
In a crucial concession, the IRD has agreed to suspend all recovery proceedings for APIT relating to the 2022/2023 and 2023/2024 seasons, with this moratorium extending until the matter’s conclusion. This provides breathing space for both the players and the cricket board during what promises to be a complex legal battle.
The court has established a strict timeline for the case’s resolution, with formal notices already issued to both the IRD and SLC. The matter has been scheduled for hearings across three dates in November 2025.
The objections are due by August 29, with counter-arguments scheduled for September 29. The substantive hearings will then take place on November 6, 14, and 18.
Counsel Nishan Sydney Premathiratne appearing for the petitioners argued that cricketers hold limited-period contracts, maintain other employment status, and have never received traditional employment benefits like EPF or ETF from Sri Lanka Cricket.
Representing the male cricketers, Nishan Premathiratne appears alongside Shenali Dias and Sidath Gajanayaka, instructed by Gamindu Karunasena. The women’s captains are represented by President’s Counsel Harsha Cabral, working with Vikum Jayasinghe and Manith Dassanayake, also on Karunasena’s instructions.
Sri Lanka Cricket has engaged President’s Counsel Kuvera de Zoysa and Sajana de Zoysa, instructed by Sanjay Fonseka, whilst the State’s interests are represented by Deputy Solicitor General Manohara Jayasinghe, appearing for both the IRD and the Auditor General.