The Sri Lanka Gambling Regulatory Authority will officially begin operations on 1 December.
The GRA has a “broad and overarching scope” to oversee ship-based, land-based and online operations with the exception of lotteries and social games. It will govern licensing and taxation, manage revenue collection and standardise problem gambling safeguards.
“The regulator will also ensure that casinos operate according to rules and concerns about money laundering,” said Deputy Minister of Economic Development Anil Jayantha Fernando.
The launch effectively repeals the Betting on Horse Racing Ordinance, the Gaming Ordinance and the 2010 Casino Business Act.
Minister: No rapid expansion of gaming
A handful of land-based casinos now operate in Colombo, the commercial capital of Sri Lanka. In October 2024, a $1.2 billion integrated resort opened in the port city. Developed by John Keells Holdings and Melco Resorts and Entertainment, City of Dreams Sri Lanka offers a 16,725-square-metre gaming floor.
Melco Chairman and CEO Lawrence Ho has said Sri Lanka “can be to India what Macau is to China”.
However, Sri Lanka is not looking to rapidly expand its gaming industry or hand out additional licences, according to Fernando. “The focus is on regulation,” he said. “That regulation will define which gambling activities are permitted, the restrictions that apply and matters such as the revocation or cancellation of licences.”
New tax structure increases levy by 3%
The introduction of a sole independent regulator was accompanied by a higher tax rate. On 1 October, the Betting and Gambling Levy increased from 15% to 18%. The casino entry fee for Sri Lankan citizens doubled from $50 to $100.
Sri Lanka’s gaming sector is projected to generate $410 million by 2026, up from $240 million in 2020. Analysts predict a compound annual growth rate of 5.4% through 2031.
The Sri Lanka government has announced that its new Gambling Regulatory Authority will begin operations next month overseeing all forms of gaming in the country.