Sri Lanka will officially enforce the Gambling Regulatory Authority Act on December 1. The Act consolidates three existing statutes under a unified decree. It will streamline oversight, enforcement and good governance within the industry and prevent illegal gambling operators from targeting Sri Lankan consumers.
Sri Lanka Introduces Gambling Regulatory Authority Act: Quick Summary
- The Sri Lankan parliament passed the Gambling Regulatory Authority Act on August 19. Speaker Dr Jagath Wickramaratne approved the decree on September 3, bringing Act No. 17 of 2025 into law.
- The Gambling Regulatory Authority (GRA) will function as an independent authority. Its responsibilities will include overseeing all forms of online and land-based operations, including gambling onboard ships.
- The GRA’s primary responsibility is regulation and not expansion. It will not issue new remote gaming licences at the moment. The government plans to enforce strict oversight before considering growth opportunities.
New Act Consolidates Three Existing Laws, Modernising Sri Lanka’s Gambling Regulations
After months of careful planning, Sri Lanka has finally decided to introduce the Gambling Regulatory Authority Act on December 1, 2025. The announcement was made via a gazette notification issued by President Anura Kumara Dissanayake and published by a local media outlet.
The Act lays the groundwork for establishing Sri Lanka’s Gambling Regulatory Authority (GRA), a central regulatory authority responsible for monitoring all forms of gambling and sports betting in the country. The GRA will collect taxes, ensure a transparent and safe gambling environment, prevent unregulated gambling and penalise violators.
The new Act will combine three existing pieces of legislation, modernise Sri Lanka’s gaming laws, and pave the way for the next generation of gambling regulations. The consolidated Acts include:
- Betting on Horse-Racing Ordinance (Chapter 44)
- Gaming Ordinance (Chapter 46)
- Casino Business (Regulation) Act, No. 17 of 2010
The GRA will primarily be responsible for enforcing social responsibility within the industry, including online gambling and land-based operators in Colombo and aboard ships. Dr Anil Jayantha Fernando, the Deputy Minister of Economic Development, affirmed that the government’s intention is regulation rather than expansion.
The Minister said:
This does not mean that the Authority will issue additional licences for casinos or gambling establishments. The focus is on regulation. That regulation will define which gambling activities are permitted, the restrictions that apply, and matters such as the revocation or cancellation of licences.
He explained the GRA’s purpose as the central authority for regulating gambling operators. Fernando further highlighted that gambling in Sri Lanka holds “significant social and cultural implications”, which the GRA must also consider apart from financial factors.
He stated:
In simple terms, what this Act seeks to achieve is the regulation of gambling and all related activities under one law and through one independent authority.
Tax Reforms and a Shift in Regulatory Frameworks on the Cards
Apart from establishing the GRA, the Sri Lankan government also plans to increase taxes on gambling operators. The Betting and Gaming Levy (Amendment), presented by the Minister of Finance, Planning and Economic Development on October 21, aims to increase the tax on gaming operators from 15% to 18%.
The amendment also proposes hiking the casino entry fee for Sri Lankan citizens from $50 to $100, incentivising players to gamble responsibly and generating additional revenue for the state. Experts predict that Sri Lanka’s online gaming sector will reach $410.04 million by 2026, even though its neighbour India has banned online gambling.
One of the primary reasons behind the GRA Act’s swift implementation is the rapid proliferation of online gambling in Sri Lanka. Officials estimate that between 60% and 70% of Sri Lankans prefer gambling online, which has forced the government to take stern steps towards regulating the industry.
2026 will be crucial for Sri Lanka’s regulated gambling industry, as the transition toward GRA’s authority is expected to begin in June. The Financial Action Task Force (FATF) is also scheduled to review the country’s compliance measures with its AMF/CFT rules. The GRA will play a crucial role in ensuring that the country’s gambling industry is compliant with established protocols.