Sri Lanka’s Gambling Regulatory Authority (GRA) is expected to be up and running by 30 June 2026. “The legislation to establish the authority is already in place”, said Harsha de Silva, of the Committee on Public Finance. “What we now need are the detailed regulations that will make it operational.”
In comments to The Morning, de Silva said the framework will specify licensing procedures, conditions of operation and penalties for non-compliance. “We need to safeguard the government’s tax revenue while also protecting consumers from the risks of unregulated gambling.”
Law firm Tiruchelvam Associates called the GRA “a one-stop shop” that will govern all gambling, excluding lotteries and social games. The government will seek “international expertise” on gaming regulations, de Silva noted, and look to Singapore as a model.
Online gambling a ‘major grey area’
Online gambling is illegal in Sri Lanka but currently gets most of the action. According to Lanka News, from 60% to 70% of local punters patronise unregulated offshore betting platforms.
“Online gambling has become a major grey area,” de Silva said. “We have been discussing the need to regulate this sector for years, but there has been little progress. This legal vacuum poses both financial and social risks.”
He said the global Financial Action Task Force will review Sri Lanka’s anti-money laundering and counter-terrorism financing safeguards when they are in place.
Currently, seven land-based casinos are licensed to operate in Sri Lanka: six smaller gaming halls and one integrated resort (IR). The latter, City of Dreams Sri Lanka, opened Phase 1 last October in Colombo Port City. Phase 2, including the casino, opened in August.
New era of tourism in Sri Lanka
City of Dreams is a joint venture of John Keells Holdings and Melco Resorts & Entertainment. It offers two hotels, a 16,700-square-metre gaming floor, meeting and convention facilities and other non-gaming attractions. The $1.2 billion complex represents the largest private investment in Sri Lankan history.
The IR is expected to draw patrons from India, China, Southeast Asia and the Middle East, all within four hours’ travel by air.
“This is not just a property, it is a symbol of possibility and a celebration of Sri Lanka’s potential as a world-class destination,” said Melco Chairman and CEO Lawrence Ho at the casino ribbon-cutting. “Sri Lanka can be to India what Macau is to China,” Ho added. “Colombo is the closest destination to India, and an integrated resort like this gives the city a lot of potential.”
Higher gaming tax, locals levy
In September, Sri Lanka voted to increase its gaming tax from 15% to 18% and double the entry fee for locals from $50 to $100.
According to the Sri Lanka Financial Times, the new levies will help fill government coffers drained during the 2022 economic collapse. That year, the government declared bankruptcy and defaulted on its debt for the first time. Shortages of essentials like fuel and food caused mass protests and forced the resignation of former president Gotabaya Rajapaksa.
In a 7 October analysis, the World Bank reported that the nation’s ongoing recovery remains “uneven and incomplete”.
“To build a stronger, fairer economy that benefits all households, Sri Lanka needs the private sector to invest and create jobs and ensure that every rupee of public money is well-spent,” said David Sislen, World Bank division director for Sri Lanka.
The bank estimates that growth will slow to 4.6% in 2025 and 3.5% in 2026, down from 5% in 2024.
The republic of Sri Lanka, already home to seven casinos, plans to have its Gambling Regulatory Authority in place by the end of June.