After reports emerged in the media about Sri Lankan government's move to ban Malinga for two years, SLC clarified that it had no such plans.
"I vehemently deny this story which is a figment of imagination of some vested interests," SLC President Upali Dharmadasa told The Hindu newspaper in Colombo.
Dharmadasa added that the issue with regard to payments for players had been settled and there was no action needed to be taken against players.
"I think with the forthcoming India series, this is some kind of a build up...They (the media) are trying to create pressure on us (SLC] and on Malinga. This will not work," Dharmadasa added.
"It is not fair to attempt to demoralise a few key players and Sri Lanka Cricket when all issues between the players and us has been sorted out," he added.
Wednesday's report had said Malinga would be banned for two years for refusing to sign contract with the Sri Lankan cricket board.
Talking about the issue, Mahindananda Aluthgamage the Sports Minister of Sri Lanka said the country will impose a ban on athletes who do not sign the contracts with national team.
"I am a great follower of fast bowler Lasith Malinga but that does not mean that I condone all his actions," Aluthgamage told Sri Lanka's Sunday Times newspaper.
"We have taken the cue from Malinga. In future, if sportspersons who are performing at national level fail to sign their central contracts with their specific sports bodies we will slap a two-year ban on them."
"This is a trend that we must nip in the bud. I find fault with the administrators for not getting tough on the players," the minister added.
"For instance, in the contract it is stipulated that a cricketer must be in the country at least two weeks prior to a tour. But, most of the cricketers who were engaged in the IPL returned to the island only a few days before the Pakistan tour. Yet, the SLC officials have not taken any action against anyone. As I understand, most of them still even have not signed their central contracts. That's bad," Aluthgamage said.
Malinga has been a regular in the Indian Premier League, playing for Mumbai Indians. He has retired from Test cricket and plays only in the shorter formats.