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December 12, 2006
On August 14, less than two hours prior to the start of the first match of the tournament, there was a bomb blast in Colombo which killed four Army personnel and four civilians. Shortly afterwards, the South Africans decided to return home, citing security issues as the reason for their decision.
SLC had an insurance policy with Ceylinco Insurance Company Limited which covered it for "loss of revenue that may result from the cancellation and abandonment of the limited-over tournament due to riot and strike, civil commotion and terrorism". The amount of the claim equates to the income lost from the sale of TV rights to Taj Television Limited.
However, although the South Africans withdrew, India and Sri Lanka did try to continue with a one-day tournament but two matches were washed out and the whole event was shelved soon after.
The matter has now reached the Western Province Court as the insurance company has declined the claim. "We have filed action as the company refused to pay the claim giving various excuses," a Sri Lanka Cricket official said.