Colombo — Sri Lanka has officially set 30 June 2026 as the deadline to establish its new Gambling Regulatory Authority (GRA), a unified body tasked with overseeing both land-based and online gambling operations. The timeline was confirmed during a meeting of the Committee on Public Finance (COPF) between the Ministry of Finance and the Department of Inland Revenue, according to reports .
The announcement comes as lawmakers express growing concern over the rapid expansion of online gambling in the island nation. According to government data presented before COPF, between 60 % and 70 % of Sri Lankan gamblers now participate online, while only 30 %–40 % continue to frequent physical casinos. The shift toward digital platforms has created a regulatory vacuum, leaving authorities struggling to monitor offshore operators and capture lost tax revenue.
The GRA is expected to consolidate responsibilities currently divided under the Casino Business (Regulation) Act No. 17 of 2010 and the Betting and Gaming Levy Act, both considered outdated for the digital age. Once enacted, the new Authority will oversee licensing, compliance, taxation, and responsible gaming standards across all verticals.
From chaos to control: Sri Lanka drafts law to regulate gambling industry
Finance officials estimate that Sri Lankans wager more than LKR 60 billion (approximately US $197 million) annually through unregulated offshore websites, resulting in substantial losses to the Treasury. Ministerial sources indicated that the GRA will prioritize the registration of online gaming providers and implement digital transaction monitoring to ensure transparent revenue collection.
“This is not simply about regulation — it’s about modernization,” one COPF member stated during the session. “The gaming economy must contribute fairly to national development, especially as the country rebuilds fiscal stability.”
The creation of the GRA also aligns Sri Lanka with other emerging Asian jurisdictions seeking to balance tourism, taxation, and social responsibility within the gaming sector. Industry analysts expect the framework to attract international investors once the rules are clarified, particularly in Colombo’s evolving casino and integrated-resort market.
While the June 2026 target provides a clear timeline, several lawmakers have urged the Ministry to advance preparatory work by early 2025 to avoid bureaucratic delays. The coming months will be decisive in shaping whether Sri Lanka’s gaming reform becomes a regional benchmark — or another missed opportunity in the island’s pursuit of economic renewal.
