The December 20 show was organised by Live Events company partnered by Sri Lanka's veteran cricketers Kumar Sangakkara and Mahela Jayawardena.
The Colombo Municipal Council threatened to legally challenge the organisers if the dues are not paid.
"We have blacklisted them (Live Events) until they enter talks with us to settle the dues. If they don't pay we will resort to legal action," Colombo Mayor AJM Muzammil said.
Muzammil alleged that the event promoter named Live Events had concealed the number of tickets printed for the show held at Colombo's rugby headquarters on December 20.
"They have printed three thousand more tickets than the 7,000 declared to us," the Mayor said.
Sri Lankan President Maithripala Sirisena saw the concert as an attack on the country's cultural values where a girl had thrown her bra at Latin American pop idol Enrique Iglesias while another got on the stage to be kissed by the singer.
Sangakkara and Jayawardena, who were overseas on the day, in a Facebook post have apologised for the shortcomings and pledged compensation for the show goers.
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