Sri Lanka Launches Gambling Regulatory Authority on December 1

Sri Lanka is set to enforce the Gambling Regulatory Authority Act, No. 17 of 2025, starting 1 December 2025, following a gazette notification issued by President Anura Kumara Dissanayake. This landmark legislation establishes a single, independent regulator tasked with overseeing all gaming activities across the country, marking a significant overhaul of the nation’s gambling legal framework.

The Act, certified by Speaker Dr. Jagath Wickramaratne on 3 September, will govern casinos, online platforms, offshore operations, and betting activities, including those aboard ships and within the Port City of Colombo. With its enactment, three longstanding laws—the Betting on Horse-Racing Ordinance, the Gaming Ordinance, and the Casino Business (Regulation) Act of 2010—will be repealed, requiring existing operators to transition under the new regulatory framework.

Regulatory Scope and Responsibilities

The Gambling Regulatory Authority (GRA) will function as an independent body with extensive powers. These include determining permitted gambling activities, setting operational restrictions, issuing and revoking licenses, enforcing social responsibility codes, and ensuring compliance with anti-money laundering measures. The Authority’s oversight will extend to land-based and remote gaming, aiming to improve transparency, strengthen investor confidence, and maintain long-term sector stability.

Deputy Minister of Economic Development Dr. Anil Jayantha Fernando clarified the purpose: “This does not mean that the Authority will issue additional licenses for casinos or gambling establishments. The focus is on regulation… In simple terms, what this Act seeks to achieve is the regulation of gambling and all related activities under one law and through one independent authority.” He also emphasized the consideration of social and cultural impacts alongside economic factors.

The GRA board will feature senior state officials, including the Secretary to the Ministry of Finance, the Commissioner General of Inland Revenue, the Head of the Financial Intelligence Unit, and the Inspector General of Police (or their representatives), along with three ministerial appointees serving three-year terms.

Tax Reforms and Market Growth

The Act coincides with new tax reforms implemented on 1 October 2025, increasing the Betting and Gambling Levy from 15% to 18% and raising the casino entry fee for Sri Lankan citizens from US$50 to US$100. The sector, valued at US$293.93 million in 2020, is projected to reach US$410.04 million by 2026, drawing growing international attention.

The timing is particularly strategic, following the opening of City of Dreams Sri Lanka in August 2025, a $1.2 billion integrated resort by John Keells Holdings and Melco Resorts & Entertainment, reinforcing Sri Lanka’s ambition to become “India’s Macau.” Consistent regulation and effective oversight are seen as critical to attracting global operators and investors, especially ahead of SiGMA South Asia 2025 in Colombo, which will highlight the country’s evolving gaming and digital economy.

A New Era for Sri Lanka’s Gambling Landscape

The implementation of the Gambling Regulatory Authority represents a major policy shift, consolidating fragmented oversight into a unified system. By creating a legally enforceable, socially responsible, and economically accountable framework, Sri Lanka is setting the stage for sustainable growth, improved governance, and greater confidence for both operators and international investors.

Source:

“Gambling Regulatory Authority Act to take effect”, themorning.lk. November 18, 2025