Sri Lanka’s Gambling Regulatory Authority (GRA) has set 31 December 2026 as its deadline to publish regulations covering casino operations, betting and online gambling after missing an initial June target.
Director General Dr W.M.K.G.A. Wickramasinghe said the rules were being finalised. Pending publication, the authority’s planned 30 November start for full operations faces uncertainty over the detailed framework.
Draft Regulations Undergo Finalisation After Advisory And Committee Reviews
An international advisory team prepared the draft before submitting it to the GRA. A review committee examined the proposals and returned them for finalisation. Established under the Gambling Regulatory Authority Act No. 17 of 2025, the regulator’s legal framework took effect on 1 December 2025.
That law unified casinos, betting and online gambling, replacing three earlier laws governing gaming, horse-race betting and casino operations. Detailed implementation rules remain outstanding.
Parliamentary Committee Questions Online Gambling Oversight And Lost Taxes
During a July 2026 Committee on Public Finance discussion, Inland Revenue Department officials reported six licensed casino operators, five operational, and 37 licensed sports betting and horse-racing operators.
No online casino operators were registered with the department, despite platforms reportedly targeting Sri Lankan customers. Committee chairman Dr Harsha de Silva criticised the resulting revenue risks.
“Every day, millions and tens of millions, probably hundreds of millions of tax money is not being paid to the State, and the State is just looking the other way,” he said. “There is a regulator, but there are no regulations.”
Higher Levies Increase Financial Obligations For Casinos And Betting Businesses
The gross collection levy rose from 15% to 18% on 1 January 2026 for operators collecting more than Rs 1 million monthly. Sri Lankan citizens’ casino entry levy doubled from $50 to $100 per visit. Casinos also face an annual gaming levy of Rs 500 million.
Betting and gaming corporate income tax increased from 40% to 45% on 1 April 2025. The IRD’s 2024 Annual Performance Report recorded Rs 9.81 billion (31.9 million) from the Betting and Gaming Levy and Rs. 5.1 billion ($16.6 million) in casino licence fees.
Combined receipts totalled Rs 14.91 billion ($48.5 million), representing 0.57% of reported government revenue.
Publishing regulations is necessary to translate Sri Lanka’s unified law into workable licensing and oversight. Higher tax rates alone cannot address businesses operating outside registration. Therefore, the December deadline should be assessed against practical implementation.
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