Sri Lanka is set to revamp its outdated gambling laws with the introduction of a new bill aimed at creating a Gambling Regulatory Authority.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.

In a significant move to modernize trade processes and boost revenue efficiency, Sri Lanka Customs is set to streamline cargo clearance procedures through the introduction of several digital tools and initiatives. This includes the implementation of an automated risk management system aimed at fast-tracking low-risk consignments while improving the detection of high-risk shipments.

Director General of Customs, P.B.S.C. Nonis Arukgoda, announced that the new risk management system will identify potentially problematic cargo, allowing other shipments to be cleared more efficiently. “Once we identify these consignments, we can fast-track the release of others. By automating the system, we improve our detection rates,” he said at a recent press briefing.

Another major innovation being rolled out is TrackMyCusDec, a tracking platform that enables traders and stakeholders to monitor the clearance status of their consignments in real time. In addition, a motorcycle verification app is being launched to enhance consumer protection. With this app, prospective vehicle buyers can verify whether a motorcycle has been legally imported and if taxes have been paid, simply by entering the chassis number. Arukgoda noted that this would deter the sale of smuggled or untaxed vehicles in the local market.

These customs reforms are part of broader efforts linked to National Tax Week, which begins at 9:30 a.m. on Monday, June 2. Senior Additional Secretary to the President, U.D.N. Jayaweera, stated that the initiative aims to enhance public understanding of tax compliance and foster a responsible tax-paying culture.

“The campaign is designed to shift negative perceptions about taxation, increase compliance, and highlight how tax revenue supports national development,” Jayaweera said. Throughout the week, the public will be educated on the allocation of tax funds and the tangible benefits they help deliver to Sri Lankans.

National Tax Week is a collaborative effort spearheaded by the Presidential Secretariat, in partnership with the Revenue Administration Reforms and Modernisation Task Force, the Ministry of Finance, and key tax revenue-generating bodies: the Inland Revenue Department, Customs Department, and Excise Department.

Jayaweera emphasized that taxation must be rooted in voluntary compliance rather than coercion. He urged all liable citizens, including those yet to register, to fulfill their obligations. The Tax Shakthi programme will serve as a key educational platform during the week, providing guidance on tax payments, reporting requirements, and the importance of compliance.

These reforms and awareness efforts mark a concerted push by the government to enhance transparency, improve tax collection, and build public trust in fiscal governance.

The Sri Lankan government is considering scaling back the generous tax holidays and exemptions offered to mega development projects under the Strategic Development Act (SDA), including those linked to the Colombo Port City. This move comes in response to recommendations by the International Monetary Fund (IMF), which has urged the country to revise its fiscal policies to enhance revenue collection and ensure sustainable debt repayment.

Currently, investments under the Colombo Port City enjoy sweeping tax concessions, such as exemptions from customs duties, VAT, and port and airport development levies. Additionally, the Port City Commission, empowered by the Port City Act, can grant tax exemptions for up to 40 years on a range of taxes, including income tax, entertainment tax, and the casino regulation levy, for businesses deemed to be of strategic national interest.

However, the IMF has flagged these wide-ranging concessions as a major hindrance to Sri Lanka’s fiscal recovery. The organization recommends shortening the duration of tax holidays, reducing them from the current 25-year period to a more moderate timeframe, and removing exemptions for projects not aligned with national strategic priorities. These suggestions are part of a broader governance reform framework aimed at streamlining investment incentives and strengthening economic resilience.

Meanwhile, political concerns have added complexity to the issue. Former Minister Patali Champika Ranawaka has alleged that Chinese companies, which supported President Anura Kumara Dissanayake’s recent visit to China, are lobbying for additional tax breaks. He claims this quid-pro-quo expectation is delaying the release of the next IMF funding tranche, as the IMF is reluctant to back tax relief that appears politically influenced.

Ranawaka also criticized the President’s recent travel to Vietnam, which included a return on a private jet, hinting that further undisclosed tax concessions might be linked to such trips. He warned that such political deals could impose long-term financial burdens on the country.

In line with the IMF’s 2023 Governance Diagnostic Assessment, which called for the repeal of the SDA, the Finance Ministry now plans to suspend the Act and replace it with a new Priority Investment Project Act. This legislation would introduce transparent and rules-based eligibility criteria to ensure tax incentives are effectively targeted and limited in duration.

Amendments to the SDA are expected to be presented in Parliament by August 2025. These will also impose new taxes on investors in the Colombo Port City and restrict the scope of exemptions. All investment proposals will be subject to clearer evaluation criteria, aiming to balance investor interest with national revenue goals.

The IMF has emphasized that such reforms are essential to prevent further revenue losses and to stabilize Sri Lanka’s economy amid its ongoing financial crisis. The government plans to fully implement the revised framework, including new rules for Port City investment eligibility, by the end of September 2025.

Sri Lanka’s state-run Pelwatte Sugar Factory is facing a critical operational and financial crisis, with nearly 17,000 metric tonnes of unsold brown sugar piling up in its warehouses and the next sugarcane harvest looming.

Lanka Sugar Company COO Nuwan Dharmaratne warns that without clearing the current sugar stock, the factory cannot process the upcoming harvest. “We’re struggling with an overdraft of Rs. 11.2 million and unpaid statutory dues of Rs. 30 million,” he said. The company’s cash flow has also been hit hard by falling ethanol prices and unsold molasses.

At the heart of the crisis is a discriminatory tax policy. Locally produced brown sugar is subject to an 18% VAT, making it up to Rs. 150 more expensive per kilogram than imported white sugar, which is tax-exempt. “We sell at Rs. 250, but it retails over Rs. 400, while imported white sugar is under Rs. 300,” Dharmaratne explained. “Consumers go by price, not health benefits.”

In a desperate move to pay May salaries and settle dues to farmers, management reportedly sold 500 metric tonnes of sugar at Rs. 199 per kilogram—well below the Rs. 283 production cost—resulting in a Rs. 42 million loss. Workers allege the sale was a financial misstep, though company Chairperson Sandamali Chandrasekara denies it was made at a loss.

The company had requested a Rs. 5 billion bailout loan from the Treasury, which was rejected. With monthly operational costs close to Rs. 1 billion—including wages for 3,900 employees—the company’s future hangs in the balance.

Sri Lanka imports over 600,000 metric tonnes of sugar annually, with local producers like Pelwatte accounting for just 40,000 metric tonnes. However, these producers face an uneven playing field and lack state protection, making competition with cheap imports unsustainable.

Government efforts to support local sugar through retail networks like Sathosa have shown little impact. Further complicating matters, the government is now considering converting around 15,000 hectares of land owned by Pelwatte and Sevanagala factories into tourism zones under a Public-Private Partnership model.

Industry Minister Sunil Handunnetti claims the PPP move will cut brown sugar production costs and attract investment, promising no layoffs.

But Dharmaratne insists that without urgent policy changes—especially scrapping the VAT on brown sugar and controlling sugar imports—the factory may not survive. “We’ve appealed to the government multiple times, but there’s been no action,” he said.

With the crushing season fast approaching, industry experts warn that Sri Lanka’s domestic sugar production may face collapse unless immediate reforms are made. The future of one of the country’s few local sugar producers now hangs by a thread.

The National Dengue Control Unit (NDCU) of the Health Ministry has issued red notices to 18 schools across the country as part of a nationwide special mosquito control programme recently carried out to curb the rising threat of dengue.

Speaking at a media briefing organized by the Sri Lanka Medical Association, Dr. Anoja Dheerasinghe, Consultant Community Physician at the NDCU, revealed that inspections were carried out at 257 schools, of which 131—amounting to 51%—were found to have mosquito breeding sites. Alarmingly, 37 schools (14.4%) were found to have active mosquito larvae.

The programme, conducted from May 19 to 24, covered 95 health medical officer divisions across 15 districts. It was implemented jointly by the Ministry of Health and Mass Media in collaboration with the NDCU, focusing on identifying and eliminating potential dengue breeding sites, particularly in high-risk areas such as school premises. The issuance of red notices signifies the urgent need for these schools to implement corrective measures to mitigate further dengue risks.

First Imported Coconut Milk Consignment Undergoes Testing as Government Targets Lower Prices

The first batch of imported coconut milk under the Government’s raw material importation programme is scheduled to undergo clearance and laboratory testing today (May 31), marking a significant step in the Plantation Industries Ministry’s efforts to stabilize domestic coconut prices and support local industry.

Approved by the Cabinet, the initiative aims to provide essential raw materials to coconut-based industries, with the goal of easing the burden on local coconut supplies. The current consignment under inspection includes frozen coconut milk, coconut milk powder, and chunked coconut with testa (non-copra), representing the equivalent of 200 million coconuts.

Launched in March 2025, the programme addresses the raw material shortages faced by the coconut milk powder industry in particular. Officials expect that this importation strategy will help reduce the cost pressures in the market and bring down retail coconut prices, while ensuring consistent supply for manufacturers reliant on coconut-based inputs.The first batch of imported coconut milk under the Government’s raw material importation programme is scheduled to undergo clearance and laboratory testing today (May 31), marking a significant step in the Plantation Industries Ministry’s efforts to stabilize domestic coconut prices and support local industry.

Approved by the Cabinet, the initiative aims to provide essential raw materials to coconut-based industries, with the goal of easing the burden on local coconut supplies. The current consignment under inspection includes frozen coconut milk, coconut milk powder, and chunked coconut with testa (non-copra), representing the equivalent of 200 million coconuts.

Launched in March 2025, the programme addresses the raw material shortages faced by the coconut milk powder industry in particular. Officials expect that this importation strategy will help reduce the cost pressures in the market and bring down retail coconut prices, while ensuring consistent supply for manufacturers reliant on coconut-based inputs.

The Ceylon Electricity Board (CEB) has reported widespread power outages across multiple regions in Sri Lanka following strong gusty winds that swept through Colombo and other parts of the country on Thursday night. According to the CEB, a total of 29,015 electricity breakdowns have been recorded nationwide as a result of the prevailing adverse weather conditions.

CEB Media Spokesman Dhammika Wimalaratne stated that repair teams have been deployed to the affected areas in order to restore electricity as quickly as possible. The CEB has also urged the public to report any ongoing power outages through the dedicated ‘1987’ hotline or the ‘CEBCare’ mobile application for prompt assistance.

With the arrival of the Southwest monsoon, severe weather has impacted 21 districts across Sri Lanka, bringing heavy rains and gusty winds. As of yesterday evening (May 30), a total of 2,249 families across 219 Divisional Secretariat Divisions have been affected. The Disaster Management Center (DMC) confirmed that three fatalities have been reported due to the adverse weather conditions.

In response, the Government has announced compensation for those who have lost their lives or sustained injuries as a result of the extreme weather. According to the DMC, one death has been confirmed in the Puttalam District, while more than 800 houses—many in Colombo and surrounding areas—have sustained partial damage. Eight people have been injured in various incidents, with two injuries reported in the Colombo District alone, where 1,321 individuals from 245 families have been impacted. The most significant effects have been recorded in the Colombo and Homagama areas, according to the District Disaster Management Unit.

The Meteorological Department issued its weather forecast for today (May 31), warning of showers or thundershowers in the Western, Sabaragamuwa, Central and North-Western provinces, as well as in the Galle and Matara Districts. Rainfall exceeding 100 mm is expected in parts of the Western and Sabaragamuwa provinces, as well as in Nuwara Eliya, Kandy, Galle, and Matara.

Meanwhile, intermittent showers are likely in the North-Central Province, Mannar, and Hambantota Districts. Strong winds ranging from 50 to 60 kmph are forecast for the western slopes of the central hills and in the Northern, North-Central, and North-Western provinces, as well as in Hambantota and Trincomalee. Elsewhere in the country, winds of 30 to 40 kmph can also be expected.

Authorities have urged the public to exercise caution and take preventive measures against potential damage from strong winds and lightning during thundershowers.

Showers or thundershowers will occur at times in Western, Sabaragamuwa, Central and North-western provinces and in Galle and Matara districts.

Fairly heavy falls above 75 mm are likely at some places in the Western and Sabaragamuwa provinces and in Nuwara-Eliya, Kandy, Galle and Matara districts.

Several spells of showers may occur in North-central province and in Mannar and Hambantota districts.

Strong winds of about 50 kmph can be expected at times over Western slopes of the central hills and in Northern, North-central and North-western provinces and in Hambantota and Trincomalee districts. Fairly strong winds about (30-40) kmph can be expected at times elsewhere of the island.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers