Sri Lanka is set to revamp its outdated gambling laws with the introduction of a new bill aimed at creating a Gambling Regulatory Authority.
Backed by President Anura Kumara Dissanayake in his capacity as Finance Minister, the legislation seeks to modernize the country’s gaming sector and replace three antiquated laws—the Horse Racing Betting Ordinance, the Gambling Ordinance of 1889, and the Casino Ordinance.
The proposed Authority will serve as the sole independent regulator overseeing both land-based and online gambling operations, including offshore activities in the Colombo Port City. A Cabinet statement on April 21 emphasized the new body’s role in promoting transparency, enhancing tax revenue, and curbing illegal gambling.
The draft legislation, which has been cleared by the Attorney General and gazetted ahead of parliamentary debate, also mandates the Authority to enforce compliance, prevent money laundering, and promote ethical practices in the gaming industry.
Amid these regulatory changes, Sri Lanka’s casino sector is expanding with significant new investments. Melco Resorts & Entertainment Ltd, a global casino operator, is slated to open a casino in Colombo’s upcoming City of Dreams Sri Lanka resort in late 2025.
Melco, via its subsidiary Bluehaven Services (Pvt) Ltd, secured a 20-year casino license effective April 1, 2024, and plans to invest $125 million into the gaming facilities as part of a broader $1 billion project led by John Keells Holdings PLC.
Additionally, two joint ventures have been approved from ten applications submitted to the Ministry of Finance, reflecting growing interest in the sector. One key partnership is between Sri Lanka’s Golden Island Hospitality Ltd and India’s Majestic Group Hotels and Casinos.
The duo received a license on August 1, 2024, to launch the Majestic Pride Casino at the Colombo Lotus Tower. The tower, the tallest in South Asia, will now serve not just as a broadcasting hub but also as a tourism and entertainment hotspot.
The government has introduced stringent licensing requirements for new entrants. According to a 2024 gazette notification, casino operators must invest at least $250 million to qualify, paying a Rs. 10 billion license fee and an annual renewal fee of the same amount. Operators investing $500 million or more will pay a reduced Rs. 5 billion license fee but still face a Rs. 10 billion annual renewal charge.
These reforms are part of Sri Lanka’s broader push to grow its tourism and entertainment sectors while tightening control over gambling operations. Existing casinos have already been subjected to revised fees, including a five-year renewable charge of Rs. 500 million and a 15% tax on revenue.
Plans are also underway to raise the local entry fee from $50 to $200 over the next three years to discourage local gambling.Currently, five licensed casinos operate in Sri Lanka, three owned by Dhammika Perera and two by Ravi Wijeratne.
