Sri Lanka's Gambling Regulatory Authority (GRA) has set 31 December as its latest deadline to publish long-delayed regulations governing casinos and online gambling, following two missed timelines during 2026.
The regulations are now being finalised after an international advisory team prepared an initial draft. The proposals were subsequently assessed by a review committee and returned to the GRA for completion.
The Gambling Regulatory Authority Act No. 17 of 2025 took effect on 1 December 2025, establishing a unified framework for casinos, betting and online gambling. However, supporting regulations initially expected by 30 June have yet to be published. A subsequent November timeline for making the authority fully operational was also missed.
The delay has drawn particular attention to online gambling. Information presented during parliamentary scrutiny in July showed that Sri Lanka had six licensed casino operators, five of which were operational, alongside 37 licensed sports betting and horse-racing operators.
However, Inland Revenue Department officials said no online casino operators were registered with the department at the time, despite multiple platforms targeting Sri Lankan customers.
Sri Lanka collected RS 9.81bn through the Betting and Gaming Levy in 2024 and another RS 5.1bn from casino licence fees, taking combined collections to approximately RS 14.91bn.
Taxes on the sector have since increased. The gross collection levy for qualifying gambling operators rose from 15% to 18% from 1 January 2026, while the casino entrance levy for Sri Lankan citizens doubled from $50 to $100. Betting and gaming businesses are also subject to a 45% corporate income tax rate, effective since April 2025.
Committee on Public Finance Chairman Harsha de Silva has criticised the continued absence of regulations, arguing that unregulated online gambling could be contributing to significant tax revenue leakage.
He also raised concerns over foreign-linked online gambling businesses and questioned the effectiveness of efforts to block illegal gambling websites.
The 31 December deadline therefore represents the GRA's latest attempt to complete the regulatory framework more than a year after the governing legislation came into operation.
The GRA framework has been in effect since December 2025
