Sri Lankan Cricketers Reach Interim Agreement with Authorities Over Tax Dispute

An **interim agreement** has been reached between **Sri Lankan cricketers and tax authorities** amid an ongoing dispute regarding **income tax obligations**.

According to media reports, both **men’s and women’s national players** had earlier appealed to an **arbitration court** in March, challenging the Sri Lanka Cricket Board (SLC) and the Inland Revenue Department. The cricketers argued that they are **independent service providers** rather than **employees**, and therefore should be taxed accordingly.

The legal team representing the **Sri Lanka Cricket Board** supported the players’ argument, stating that the players render services to the board but are not its formal employees.

However, the **Attorney General’s office** contended that players become **employees upon signing central contracts**, and thus are liable to pay taxes as per standard employment terms.

During a court hearing held yesterday, an **interim settlement** was reached. As per the agreement:

* **Advance personal income tax** will be deducted from players starting **June 2025**.
* **Outstanding tax liabilities** for the previous **two fiscal years** will be **put on hold** until the court reaches a final verdict in the case.

The resolution temporarily defuses tensions while awaiting a definitive legal ruling on the tax status of contracted cricketers in Sri Lanka.