Remodelled bowling action of 25-year-old was assessed in Chennai on February 2.
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It was found that the amount of elbow extension for all his deliveries was within the 15-degree level of tolerance permitted under the ICC Illegal Bowling Regulations.
"Match Officials are still at liberty to report Dananjaya if they believe he is displaying a suspect action and not reproducing the legal action from the assessment," the ICC media release stated.
To assist the match officials, they will be provided with images and video footage of the bowler's remodelled legal bowling action.
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Dananjaya was barred from bowling after being reported during the first Test against England in Galle in November 2018. After that, the spinner underwent an independent assessment of his bowling action in Brisbane on November 23, following which he was barred from bowling in international cricket.
