Sri Lanka Cricket has reached a financial settlement with former head coach Chandika Hathurusinghe, concluding a protracted legal dispute that had been escalated to international arbitration.

Sri Lanka Cricket (SLC) has resolved its contractual dispute with former head coach Chandika Hathurusinghe through a USD 164,000 settlement, according to reports. The agreement marks the conclusion of legal proceedings that had been brought before the Court of Arbitration for Sport (CAS) in Switzerland, with Hathurusinghe agreeing to withdraw his case following the settlement reached earlier this year.

The financial resolution represents a significant reduction from Hathurusinghe's initial claims. He had originally sought approximately USD 5 million in damages following his contract termination. After the first round of CAS proceedings encountered complications, he subsequently filed fresh legal action seeking roughly USD 450,000. Under the final settlement agreement, Hathurusinghe accepted USD 200,000 in total compensation, with SLC directly paying USD 164,000 to cover the settlement minus half of the associated tax liability.

During his tenure as head coach from December 2017, Hathurusinghe oversaw 67 international matches, with Sri Lanka winning 24 and losing 38. His period in charge was marked by significant institutional challenges. A one-man inquiry found him guilty on six charges, including allegations of creating disharmony within the team and inadequately preparing players for competition.

The prolonged dispute had generated substantial legal expenses for both parties. The Committee on Public Enterprises (COPE) had previously examined the matter and recommended that SLC and Hathurusinghe pursue an out-of-court settlement to minimize further financial and administrative costs associated with continued litigation.