Sports Minister Mahindananda Aluthgamage said the nomination of Sumathipala, a former President, has been rejected.
Objections were raised against his nomination over his links to sporting bookies and media institutions.
Sumathipala's nomination violates section 15-1 of the national sports associations regulations as stipulated in the sports law, sports ministry said.
Aluthgamage had appointed a three-member committee to probe the eligibility of Sumathipala, a ruling party Member of Parliament, to head the cricket administration.
Sports ministry sources said that the nominations of the other two contenders, the incumbent Upali Dharmadasa and Sumith Perera, are also likely to be rejected.