The Finance Ministry and the Department of Inland Revenue have agreed to implement the Committee on Public Finance (COPF) recommendation to establish a Gambling Regulatory Authority by June 30, 2026, aimed at formally regulating Sri Lanka’s casino industry.
The decision was discussed during a COPF meeting held in Parliament, chaired by MP Dr. Harsha de Silva, where officials underscored the urgent need for a structured framework to govern both physical and online gambling operations.
During the meeting, it was revealed that 60% to 70% of casino users in Sri Lanka now engage with online casinos, while only 30% to 40% visit physical establishments. However, no mechanism currently exists to collect taxes from online casino operations, resulting in a significant loss of potential state revenue.
Dr. de Silva emphasised the importance of expediting the establishment of the new authority, noting that Sri Lanka’s anti-money laundering and counter-terrorism financing (AML/CFT) compliance will be reviewed by the Financial Action Task Force (FATF) next year. He stated that formalising casino operations under a regulatory body would help enhance transparency, improve tax collection, and ensure compliance with international standards.
The Committee also proposed obtaining foreign technical expertise to assist in developing the regulatory and operational framework for the new authority.
Officials from the Finance Ministry informed the committee that nominations have already been called for a seven-member board of directors to oversee the authority, after which a Chief Executive Officer will be appointed to lead its operations.
Currently, six casino licenses have been issued for physical establishments in Sri Lanka. However, online casino operations remain unregistered and untaxed, despite their growing dominance in the sector—a gap the forthcoming Gambling Regulatory Authority seeks to address.
