"A lot of countries have such awards. This is something that we've been thinking of seriously and want to initiate," Pramodaya Wickaramasinghe, president of the SLCA, told AFP on Tuesday.
"Domestic cricket has been one of our major concerns. We feel there's not much recognition for it, though it plays a vital part. We have a sponsor and will have a grand awards ceremony early next year," he said.
The awards will carry a total cash prize of Rs. 12 million ($120,000), with the player of the year set to receive Rs. 250,000 ($2,500).
Apart from players, some umpires, coaches and curators are also likely to be honoured at the ceremony.
The SLCA, which comprises former and present cricketers, recently introduced a pension scheme for former players in which everyone over the age of 55 gets Rs. 10,000 ($100) per month.
The association was also involved in negotiating contracts for players earlier this year.