Sri Lanka Hit by Major Financial Blow Before India Test Series, Pays Crores in Settlement

Sri Lanka Cricket has suffered a major financial setback just days before the start of its highly anticipated two-match Test series against India. The Sri Lankan cricket board has agreed to pay a settlement to former head coach Chandika Hathurusingha, bringing a long-running legal dispute between the two sides to an end.

According to reports, Sri Lanka Cricket paid Hathurusingha US$164,000, which is roughly ₹1.4 crore based on current conversion rates. However, some Indian reports have described the overall settlement as approximately ₹5.5 crore, reflecting the financial implications of the dispute and associated settlement.

Why Did Sri Lanka Have to Pay Hathurusingha?

Hathurusingha had taken charge of Sri Lanka for a second stint as head coach toward the end of 2022. His tenure, however, did not last as long as expected.

Questions were raised over the team’s performances and his relationship with players. Sri Lanka Cricket eventually terminated his contract before its scheduled completion.

Following his dismissal, Hathurusingha challenged the termination and pursued legal action against the cricket board. The dispute eventually reached the Court of Arbitration for Sport (CAS).

Legal Dispute Finally Comes to an End

Rather than allowing the case to continue, Sri Lanka Cricket agreed to a settlement payment. The agreement brings an end to the lengthy contractual dispute between the former coach and the board.

For Sri Lanka Cricket, the settlement represents another significant financial burden at a time when the national team is preparing for an important home Test series.

India Series Begins on August 15

The financial development comes just before India’s tour of Sri Lanka.

India and Sri Lanka are scheduled to play two Tests, with the first match beginning on August 15 in Galle. The second Test will be played in Colombo from August 23.

The series is part of the ongoing World Test Championship 2025–27 cycle, making the matches particularly important for both teams.

Sri Lanka Already Under Pressure

Sri Lanka will be looking to make the most of home conditions against a strong Indian side led by Shubman Gill. The hosts have also announced free entry for fans for the two Tests in an effort to boost attendance and create a strong atmosphere at the venues.

With the Indian team already in Sri Lanka and preparations underway, attention is now shifting toward the cricket itself.

Why This Matters for Sri Lanka Cricket

The Hathurusingha settlement has once again put the spotlight on the administration and contract-management practices of Sri Lanka Cricket. Paying a substantial settlement after terminating a coach’s contract before its completion can raise questions about how such agreements are structured and handled.

For a cricket board operating with limited financial resources compared with some of the world’s wealthiest cricketing nations, unexpected legal expenses can put additional pressure on its finances.

The Bottom Line

Just before the India-Sri Lanka Test series, Sri Lanka Cricket has had to deal with an unexpected financial setback. The board’s settlement with former coach Chandika Hathurusingha has ended a long-running contractual dispute, but the payment has once again raised questions about the management of coaching contracts.

Meanwhile, Sri Lanka must quickly shift its attention back to the field, with India arriving for the first Test in Galle on August 15.

 

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