Yes, the sprites use various colour registers depending on the setup, but that number is "translated" from the sprite shape itself. For example, if you're using colours 240-255, colour 0 of the sprite will be entry 240 on the palette object (but will be transparent so moot...), colour 1 on the sprite will be entry 241 etc.
Note that this is on AGA setups only; OCS/ECS-compatible sprite modes use different, lower registers.
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