The dispute had reached a point where Sri Lanka Cricket Chairman Thilanga Sumathipala and Sports Minister Dayasiri Jayasekara have had to intervene, it is reported.
While there is around one year to go for the 2019 World Cup ODI to be held in England, focus is placed on appointing a team captain now, until the World Cup.
During a meeting held between Chandika Hathurusinghe and the Selection Committee recently, a request was made to appoint either Angelo Mathews or Dinesh Chandimal as the captain of the ODI team.
Hathurusinghe had been in favour of appointing Mathews, but in the event he refuses the captaincy, he was in favour of appointing Chandimal.
However Labrooy had objected to this request.
Meanwhile, Hathurusinghe had notified the Cricket Board heads that he was unable to embark on a successful journey with Tisara Perera, to which the Cricket Board officials had responded positively, it is also reported.