As of July 20, Sri Lanka continues to delay the implementation of its gambling regime. The first regulatory package, originally promised for June 30, is not expected to be finalized until October 2026, while unlicensed online platforms proliferate using cryptocurrencies and operating outside the formal banking system.
Appearing before the Committee on Public Finance, Gambling Regulatory Authority Acting Director General Gaya Adikari confirmed that the draft remains under review by an expert committee approved by the Cabinet. Its observations are expected before August. The first phase will include the ministerial order under Section 19, defining authorized gambling activities, alongside rules covering licensing, online gambling and anti-money laundering controls.
COPF Chairman Harsha de Silva denounced repeated delays dating back to 2022 and warned that the country could become a hub for online scams. He questioned the committee’s expertise. GRA Chairman N. M. W. Nawarathna Bandara and Adikari acknowledged that the authority had not consulted gambling operators.
Priyantha Weerasooriya
Kumara Dharmawardena, Deputy Commissioner of the Department of Inland Revenue, reported 37 licensed sports-betting and horse-racing wagering operators, six licensed casino operators and only five currently operating. No online casino operator is officially registered.
Bandara declared that existing online gambling operations are illegal. Sections 15 and 16 require a valid licence and a company registered in Sri Lanka; violations carry penalties of up to LKR 10 million and two years in prison.
Inspector General of Police Priyantha Weerasooriya requested guidance from the Attorney General because authorities face obstacles when prosecuting offences directly under the legislation. Police currently rely on the Computer Crime Act No. 24 of 2007.
The Gambling Regulatory Authority Act No. 17 of 2025 has been in force since December 1, 2025. The delay concerns its operational regulations, which must be gazetted and submitted for parliamentary approval within three months. The responsible minister is President Anura Kumara Dissanayake, Minister of Finance, Planning and Economic Development.
