Sri Lanka’s plans to launch its new national gambling regulator have been delayed beyond an internal June target, as authorities seek further expert input before implementing the country’s new regulatory framework, according to local media reports.
The country’s Gambling Regulatory Authority Act came into effect on December 1, 2025, establishing a single regulator for casinos, betting, online gambling and other gaming activities. At the time, the government said the new authority would modernise oversight of the sector and strengthen tax collection, while introducing a more comprehensive licensing regime.
The legislation created the Gambling Regulatory Authority as an independent body responsible for regulating and supervising all forms of gambling in Sri Lanka, replacing oversight that had previously been spread across multiple government agencies.
According to Sri Lankan news outlet The Morning, authorities had initially targeted June this year for the launch of the operational regulatory framework. That timetable has slipped as the government continues work on the authority’s structure and regulatory rules.
The publication said officials viewed the additional time as necessary to ensure the framework was sufficiently robust before implementation, particularly given the expansion of the country’s gaming sector and the growing challenge posed by offshore online betting platforms.
Another local publication, The Morning Telegraph, reported that the government was seeking additional technical expertise before finalising the authority’s operating model, including consultation with international specialists familiar with gaming regulation.
The reports suggested the delay was intended to strengthen the regulator’s ability to oversee anti-money laundering controls, responsible gambling measures and licensing standards before the new framework is fully implemented.
The Morning noted that the Sri Lankan government sees the gambling industry as having potential to attract foreign investment, boost tourism and generate additional fiscal revenue. At the same time, it said policymakers have emphasised safeguards aimed at limiting gambling-related harm among locals.
Those measures already include a doubling of the casino entrance levy for Sri Lankan citizens to US$100 from January 1 this year, alongside an increase in the gross collection levy on betting and gaming businesses to 18 percent from 15 percent.
Sri Lanka’s first international-standard integrated resort with a casino, City of Dreams Sri Lanka, opened in August last year. The property was developed by John Keells Holdings Plc in partnership with Melco Resorts & Entertainment Ltd.
