By: Staff Writer
June 24, Colombo (LNW): The Committee on Public Finance (COPF) has approved the importation of casino machines into Sri Lanka, lifting restrictions imposed during the country’s economic crisis. However, the committee has directed the creation of a special monitoring mechanism to oversee all such imports, according to COPF Chairman Dr. Harsha de Silva.
, Dr. de Silva revealed that casino equipment was among the items listed for import clearance. “With the concurrence of the committee, I instructed that a special system be introduced to monitor each casino machine brought into the country,” he stated.
The move comes in the wake of the recent presentation of the Gambling Regulatory Authority Bill, 2025 in Parliament, which seeks to establish a framework to oversee all gambling activities, both physical and online.
Dr. de Silva raised concerns about gaps in the existing regulatory landscape. “The law only establishes the regulator, but does not include regulations to govern operations. For example, Singapore has separate laws for the regulator and casino operations. Here, the government seems intent on legalising junket operations without proper oversight,” he said, adding that online gambling remains untaxed and unregulated.
COPF member and former finance minister Ravi Karunanayake echoed a pragmatic approach. “The government wanted to explore how this could generate revenue. Our role was to evaluate its financial benefits, not its social implications. That’s why we approved it,” he noted.
Import restrictions on casino machines were initially introduced under the Casino Business Regulation Act No. 17 of 2010 during the economic crisis. The recent decision reverses that ban, aiming to facilitate investment in licensed tourist establishments and boost revenue.
The government views gambling as a strategic tool to revitalize the tourism and entertainment sectors. Currently, the industry operates under outdated laws such as the Betting and Gaming Levy Act No. 40 of 1988 and the 2010 Casino Business Act. However, regulatory loopholes have hindered effective licensing and enforcement.
The new Gambling Regulatory Authority Bill seeks to rectify this. It proposes the establishment of a central authority responsible for issuing licences, enforcing compliance, and implementing anti-money laundering (AML) and Know Your Customer (KYC) guidelines. The authority will include officials from the Finance Ministry, Inland Revenue, the Financial Intelligence Unit, and the police, along with independent experts.
Meanwhile, Sri Lanka’s casino sector continues to attract international investment. A landmark project is the City of Dreams Sri Lanka, a $1 billion integrated resort in Colombo by Melco Resorts & Entertainment and John Keells Holdings. The resort, South Asia’s first of its scale, opened its first phase in October 2024. Its second phase, due later this year, will include casino operations under a 20-year licence held by Melco’s local subsidiary, Bluehaven Services.
To further boost revenue, the government has proposed doubling casino entrance fees from $50 to $100 and increasing the gambling turnover tax from 15% to 18%.
Authorities believe that these reforms will not only attract foreign investors and tourists but also establish a transparent and accountable gambling environment that contributes meaningfully to the national economy.
