SLC sources said the players' tough stand, even momentarily, threatened the island's chances in the World T20 as authorities contemplated sending a second string side for the tournament.
Sri Lanka Cricket CEO, Ashley de Silva said players have refused to enter contracts based on a new formula announced this week. The players have been demanding a 20 per cent share from the monies derived from ICC to the SLC.
Players have rejected this formula claiming that cumulative bonuses under this would be a mere six per cent.
They want a reasonable percentage from the ICC monies to form an integral part of their annual contracts.
They are willing to come down on the 20 per cent demand.
Player sources say they had decided to play for the country in the T20 without formal contracts in view of the importance of the event pending negotiations.