Sri Lanka pushes gambling regulations back to end of 2026

Sri Lanka has pushed back the publication of its gambling regulations to the end of 2026, with lawmakers warning that the delay is costing the state tax revenue from unregulated online operators.

The Gambling Regulatory Authority was due to publish the first set of rules by June 30 and be fully operational by November 30. It has now set December 31 as the new date, with the draft prepared by international advisers and checked by a review committee before being sent back for final changes.

Sri Lanka has six licensed casino operators, five of them active, but Inland Revenue Department officials told Parliament’s Committee on Public Finance in July that no online casino operators were registered with the department, even though many platforms target Sri Lankan players.

Dr. Harsha de Silva, Committee on Public Finance Chairman, criticized:

“There is a regulator, but there are no regulations.”

The Betting and Gaming Levy brought in Rs. 9.81 billion in 2024 and casino license fees another Rs. 5.1 billion, together 0.57% of the department’s reported revenue. Taxes on the sector have since gone up, with corporate income tax for betting and gaming businesses rising to 45% in April 2025, the gross collection levy reaching 18% this year, and casinos paying an annual gaming levy of Rs. 500 million.