Sri Lanka is shifting ahead with plans to create its new Gambling Regulatory Authority (GRA), a step that goals to improve oversight of the nation’s quickly rising gaming business. The nationwide authorities has set a goal to have the GRA totally operational by June 30, 2026, after latest discussions in Parliament. This milestone follows the passage of the Gambling Regulatory Authority Bill in August, which formally laid the groundwork for the creation of the regulatory physique.
The Need for a Dedicated Gambling Regulator
The institution of the GRA is a part of Sri Lanka’s broader technique to regulate each land-based and on-line playing operations. As of now, the nation faces challenges in gathering tax revenues from the net playing sector, which has change into the dominant type of gaming in Sri Lanka. During a gathering with the Committee on Public Finance (COPF) earlier this month, officers revealed that round 60% to 70% of on line casino exercise now takes place on-line, with solely 30% to 40% of gamers visiting bodily casinos. This development has highlighted the pressing want for a system that may effectively acquire taxes from the booming on-line market.
The GRA’s mandate will embrace overseeing the gathering of gambling-related income, making certain transparency in operations, curbing unlawful playing, and standardizing gaming institutions throughout the nation. In addition to regulating on-line playing, the GRA can even be tasked with implementing requirements for land-based casinos. The physique may have a essential function in making certain the nation adheres to worldwide monetary and anti-money laundering requirements, significantly as Sri Lanka prepares for a evaluate by the Financial Action Task Force (FATF) in 2026 concerning its anti-money laundering and counter-terrorism financing practices.
The formation of the GRA is anticipated to be a fancy course of. While the laws for its creation has already been handed, detailed rules are nonetheless being developed. These rules will define vital features equivalent to licensing procedures, operational situations, penalties, and compliance measures aimed toward defending each the federal government’s tax income and customers from unregulated playing.
Dr. Harsha de Silva, Chairman of the COPF, emphasised that worldwide consultancy assist could be sought to assist design the regulatory framework, seemingly drawing inspiration from profitable fashions equivalent to Singapore’s. The framework will be certain that the GRA can successfully regulate the sector and produce on-line playing into the fold of authorized operations. At current, on-line playing in Sri Lanka is essentially unregulated, a state of affairs that has been a major concern for each lawmakers and business stakeholders.
One of the important thing features of the GRA’s operation will probably be addressing the excessive degree of unregistered on-line playing. This type of playing has change into widespread, with a good portion of Sri Lanka’s gaming exercise going down exterior of the prevailing regulatory framework. The nation’s focus will seemingly shift towards making certain that on-line gaming platforms function beneath the brand new authorized construction, with clear pointers for tax assortment and operational compliance.
Sri Lanka’s Strategic Tourism and Gaming Vision
As a part of its broader financial technique, Sri Lanka goals to seize up to 10% of its GDP from tourism, with a specific emphasis on attracting worldwide vacationers fascinated by playing. This imaginative and prescient has been underscored by the launch of the City of Dreams Sri Lanka, the nation’s first international-standard built-in resort with a on line casino, which opened in Colombo in August. Managed by Melco Resorts and Entertainment Ltd, this growth goals to entice high-end vacationers, significantly from neighboring India, a key supply marketplace for Sri Lanka’s tourism sector.
Lawrence Ho, Chairman of Melco Resorts, has advised that Sri Lanka may change into “India’s Macau,” capitalizing on its proximity to the Indian market. The nation is concentrating on half one million Indian vacationers this yr, marking a 20% enhance in guests from its largest vacationer market. This rising tourism sector, mixed with the authorized framework for playing, will play an important function in Sri Lanka’s financial restoration and future progress.
In addition to establishing the GRA, Sri Lanka’s authorities has made strides in adjusting its gambling-related taxation insurance policies. As reported by GGRAsia, in October 2025, the Cabinet of Ministers authorised a finances proposal to enhance the betting levy by three share factors, elevating the tax charge on betting and gaming to 18%. Furthermore, the on line casino entry charge for Sri Lankan residents has been doubled to US$100. These measures mirror the federal government’s dedication to growing its revenues from the gaming sector whereas additionally enhancing oversight.
