Sri Lanka’s Gambling Regulatory Authority (GRA) has set a December 31 deadline to publish regulations governing casinos and online gambling, following repeated delays and concerns over tax collection and regulatory oversight.
The revised timetable comes as Parliament’s Committee on Public Finance (COPF) raises concerns about uncollected gambling revenue and foreign-linked online operators functioning without adequate financial supervision.
COPF Chairman Harsha de Silva has criticized delays in establishing effective regulatory oversight, warning that the absence of enforceable rules could result in substantial tax revenue losses.
Information presented to Parliament in July showed that Sri Lanka had six licensed casino operators, five of which were operational, alongside 37 licensed sports betting and horse-racing operators. However, Inland Revenue Department (IRD) officials reported that no online casino operators were registered with the department at the time.
The government has meanwhile increased gambling taxes, raising the gross collection levy from 15% to 18% for operators with monthly gross collections exceeding LKR 1 million, effective January 1, 2026. The casino entrance levy for Sri Lankan citizens was also doubled from $50 to $100.
According to the IRD’s 2024 Annual Performance Report, the government collected $29.5 million through the Betting and Gaming Levy.
The GRA was established under the Gambling Regulatory Authority Act No. 17 of 2025, which took effect on December 1, 2025. The legislation introduced a unified framework for casinos, betting and online gambling.
The initial regulations are expected to address licensing fees, online gambling and anti-money laundering controls. A ministerial order will also specify permitted gambling activities.
GRA Director General Dr. W.M.K.G.A. Wickramasinghe told The Sunday Morning that an “international advisory team” initially drafted the regulations before they underwent committee review and were returned to the authority for finalization.
The authority previously missed its June 30 deadline, citing additional vetting in July. Its subsequent November 30 target for becoming fully operational was also missed.
Under the legislation, the regulations must be submitted to Parliament for approval within three months of publication, meaning the December deadline does not mark completion of the regulatory process.