Under the proposal, the gross gaming revenue tax would rise to 18% from the current 15%. Entry fees for Sri Lankans would also increase, climbing from $50 to $100.
Sri Lanka currently hosts around a dozen smaller gaming venues. In August, the country’s first integrated resort, City of Dreams Sri Lanka, opened in Colombo. The $1.2 billion project is a joint venture between Melco Resorts & Entertainment and John Keells Holdings.
Meanwhile, lawmakers are working to establish Sri Lanka’s first Gaming & Regulatory Authority, which will oversee the sector as the market expands.
Casinos as part of economic recovery
That year, inflation surged to 50%, forcing Sri Lanka to seek a $600 million bailout from the World Bank. In 2023, the International Monetary Fund followed with a $3 billion loan. The assistance came with strict austerity measures, resulting in what the World Bank described as “one of the largest fiscal adjustments in its history — equal to nearly 8% of GDP over three years.”
“Sri Lanka has largely stabilised its economy,” said World Bank Division Director David Sislen. “The challenge now is to get better results from every rupee collected and spent. This means modernising tax administration, focusing on direct taxes, and ensuring public spending is both efficient and fair.”
Looking for Singapore-style tourism boost
“The big opportunity for Sri Lanka is outbound tourism from India,” Balendra said. “It’s the largest source market right now, accounting for about 20% of all arrivals.” He added that the new integrated resort is also expected to attract visitors from South Asia, Southeast Asia, and the Middle East. “A project like this will really help drive tourism growth.”
Ho noted that City of Dreams is “the first and only integrated resort in South Asia.” He compared its significance to Marina Bay Sands in Singapore and the many IRs in Macau. “Being so close to India and its 1.4 billion people, nothing like this currently exists in the region,” he said.
Balendra has previously drawn parallels to Singapore’s tourism boom following the 2010 openings of Marina Bay Sands and Resorts World Sentosa, which triggered an immediate surge in arrivals.
Ho projected that City of Dreams could eventually generate $250 million in gross gaming revenue annually. “We expect to make a significant and positive impact on the local community and economy,” he said.
Sri Lanka President Anura Kumara Dissanayake has set a target of increasing global tourist arrivals by 50%, with a particular focus on attracting high rollers from India and China. With tourism currently accounting for 4% of GDP, Yahoo Finance noted, “a surge in visits from gamblers could be just the token.”
