The Sri Lanka Gambling Regulatory Authority (GRA) is set to formally begin operations on 1 December.
The new regulator has been given a “broad and overarching mandate” to supervise all gaming activities in the country, including ship-based, land-based and online gambling. Only lotteries and social gaming fall outside its jurisdiction. The GRA will oversee licensing and taxation, handle revenue collection and implement uniform safeguards to address problem gambling.
“The regulator will also ensure that casinos follow proper rules and address concerns related to money laundering,” said Deputy Minister of Economic Development Anil Jayantha Fernando.
The establishment of the GRA also marks the end of several older laws. The Betting on Horse-Racing Ordinance, the Gaming Ordinance and the 2010 Casino Business Act will all be repealed as regulatory authority transitions to the new body.
Minister: No rapid expansion of gaming
A small number of land-based casinos currently operate in Colombo, Sri Lanka’s commercial capital. In October 2024, the country saw the launch of a major $1.2 billion integrated resort in the port city. Developed by John Keells Holdings in partnership with Melco Resorts and Entertainment, City of Dreams Sri Lanka features a 16,725-square-metre gaming floor.
Melco Chairman and CEO Lawrence Ho has described Sri Lanka as having the potential to become “to India what Macau is to China.”
Despite this, the government is not planning a rapid expansion of the gaming sector or issuing new licences, Fernando noted. “The priority is on regulation,” he said. “Those regulations will determine which gambling activities are allowed, what restrictions apply, and how licences can be revoked or cancelled.”
New tax structure increases levy by 3%
The establishment of a single independent regulator was introduced alongside a tax increase. Effective 1 October, the Betting and Gambling Levy rose from 15% to 18%. Additionally, the entry fee for Sri Lankan citizens visiting casinos was doubled from $50 to $100.
Sri Lanka’s gaming industry is expected to reach $410 million in revenue by 2026, up from $240 million in 2020. Analysts also forecast a compound annual growth rate of 5.4% through 2031.
