Cricket captains file writ applications in Court of Appeal

Wednesday, 19 March 2025 00:04 -     - {{hitsCtrl.values.hits}}

Charith Asalanka and Dhanajaya De Silva 


 

  • To prevent IRD categorising them as permanent employees of SLC

A writ petition was yesterday preferred by Charith Asalanka and Dhanajaya De Silva as the respective captains of the One Day International and Twenty20 cricket teams and the Test Cricket Team, challenging an arbitrary and unreasonable classification of Sri Lanka’s national cricketers as employees of the national association, Sri Lanka Cricket (SLC) by the Inland Revenue Department.

The matter was taken up before the Acting President of the Court of Appeal Justice M.T.M. Lafar and Justice K. P. Fernando.

The petition filed seeks for notice to quash the decision of the Inland Revenue Department and an interim order to suspend the decision of the Inland Revenue Department. 38 national cricketers, including players Angelo Mathews, Wanindu Hasaranga, Maheesh Theekshana, Pathum Nissanka, and Kusal Mendis signed a letter 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 as follows:

Sri Lanka’s cricketers have been historically treated as independent service providers and 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;

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;  

The Court’s attention was drawn to the contract and the uncertainty involved with career progression of cricketers and also that there was no certainty in a Contract being offered;

Sri Lanka Cricket, as per the contract with a player, implements the International Cricket Council’s (ICC) rules in the interest of the game;

The nature of the contractual terms between the parties involved significant uncertainty as to renewal, tenure and payments which was not a salary but a fee;

The contracts between players and SLC also facilitates the use of image rights of players and at all times such right is to be vested with the player as per the contract, which is a necessary requirement for broadcasting of matches and facilitating global cricket events;

 The Inland Revenue Department by a letter in October 2024 had arbitrarily and unreasonably informed SLC of its categorisation of national cricketers as employees of SLC without the Cricketers being given a hearing or being informed to make representations and directed SLC to make appropriate statutory deductions;

Players were informed of this change in classification in or around February 2025 by SLC and prior to the Petitioners instituting action challenging the decision of the Inland Revenue Department, the cricketers had obtained legal opinion as to their rights, and the said opinion was placed before the Court.

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;

The challenged decision also impacts cricketers who are attached to the police, army and other entities;

 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;

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.

On behalf of SLC, it was submitted that SLC agreed with the factual position taken by the Petitioners as being independent service providers; and that they will abide by any Order of the Court.

The next date of the matter is 28 March 2025 for Petitioner’s to continue to make submissions and the Respondents’ reply submissions.

Counsel Nishan Sydney Premathiratne appeared with Shenali Dias and Sidath Gajanayaka 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 Fonsek represented Sri Lanka Cricket.

Deputy Solicitor General Manohara Jayasinghe appeared for the Inland Revenue Department.

 

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