Several players had left their hotel rooms in the evening before the crucial quarter semi final match against South Africa and returned late in the night, reports add.
It is said they had accepted invitations of Sri Lankans living in Australia.
Although it is unknown whether Michael was aware of this, it is said that he is unable maintain the discipline of the team.
Last year, Kithuruwan Vithanage was placed on probation for one year, after he had left the team hotel overnight during the Test series against Pakistan in Galle.
Michael, who was the team manager back then had said he was unaware of the incident.