Sri Lanka is ready to launch its extremely anticipated Playing Regulatory Authority (GRA) by June 2026. The institution of this regulatory physique is an important step in modernizing the nation’s playing sector, which has lengthy struggled with a scarcity of complete regulation. Dr. Harsha de Silva, Chairman of the Committee on Public Finance (COPF), confirmed that whereas the laws to ascertain the authority is already in place, the subsequent part will contain drafting the mandatory laws to make it absolutely operational. “What we now want are the detailed laws that can make it operational,” Dr. de Silva defined, highlighting the significance of this subsequent step to make sure compliance with worldwide requirements.
The GRA will oversee each land-based casinos and on-line playing platforms, unifying the regulatory and licensing framework for the trade. Dr. de Silva emphasised the necessity for sturdy laws that handle key points corresponding to licensing procedures, penalties for non-compliance, and shopper safety, all whereas safeguarding the federal government’s tax income. “We have to safeguard the Authorities’s tax income whereas additionally defending customers from the dangers of unregulated playing,” he stated.
Addressing the On-line Playing Sector
A significant problem the GRA will face is regulating the quickly rising on-line playing sector, which is at the moment working in a authorized gray space. Regardless of being unlawful in Sri Lanka, on-line playing platforms, notably these based mostly abroad, account for an estimated 60% to 70% of the nation’s playing exercise. Dr. de Silva described on-line playing as a “main gray space,” stressing that Sri Lanka has been discussing the necessity for regulation on this sector for years, however progress has been gradual. This lack of regulation not solely presents monetary dangers but in addition poses social challenges. “This authorized vacuum poses each monetary and social dangers,” he stated.
The brand new authority will handle these points by creating a unified licensing system for each bodily and on-line casinos, guaranteeing that every one playing actions in Sri Lanka are introduced beneath the identical regulatory framework. This transfer is seen as a means to enhance governance and defend each the economic system and customers from unregulated playing dangers.
Worldwide Experience to Information Framework
To make sure that the regulatory framework is each complete and efficient, Sri Lanka plans to hunt worldwide experience. Dr. de Silva talked about that the Treasury would seek the advice of with world specialists, utilizing fashions like Singapore’s playing laws as a reference. “Sri Lanka doesn’t have the required specialists for these duties, so worldwide experience will probably be sought,” he added, underscoring the significance of drawing from profitable worldwide practices to construct a sturdy system.
The regulatory framework will handle not simply the authorized points of playing, but in addition the compliance necessities of the worldwide Monetary Motion Activity Pressure (FATF), notably in relation to anti-money laundering and counter-terrorism financing efforts. Dr. de Silva identified that after the laws are finalized, Sri Lanka’s efforts will probably be reviewed by the FATF, guaranteeing that the nation meets worldwide requirements.
Strengthening the Native Playing Business
Sri Lanka’s native playing trade has additionally seen elevated international funding, with Metropolis of Desires Sri Lanka, a $1.2 billion built-in resort, opening its first part in Colombo Port Metropolis in late 2024. The venture, a collaboration between John Keells Holdings and Melco Resorts & Leisure, goals to draw guests from India, China, and different Southeast Asian markets. Lawrence Ho, Chairman of Melco Resorts, acknowledged that the built-in resort might make Sri Lanka a premier playing vacation spot within the area, just like Macau’s position in China. “Sri Lanka will be to India what Macau is to China,” Ho stated, noting the resort’s potential to attract in vacationers from neighboring nations.
This venture aligns with the nation’s broader efforts to spice up tourism and financial development. Nevertheless, alongside the rise in international funding, Sri Lanka’s authorities has additionally been tightening its grip on the playing trade. The latest improve in gaming taxes from 15% to 18%, together with greater entry charges for native gamers, displays the federal government’s push to boost extra income, particularly following the financial collapse of 2022. The federal government is seeking to replenish its funds after the nation’s debt default, which led to protests and important financial hardship.
Regulatory Framework in Place, Subsequent Steps for the GRA
Whereas the authorized basis for the GRA has been laid, there are nonetheless steps to be taken earlier than the authority turns into absolutely operational. Based on a senior official from the Division of Fiscal Coverage, the On line casino Enterprise (Regulation) Act, handed in 2010, lacked the mandatory implementing laws till 2022. The finalization of those laws paved the best way for the formal creation of the GRA. “The regulatory basis is now full, and the subsequent step is to formally represent the authority,” the official defined.
The GRA’s Board will probably be made up of seven members, together with key officers such because the Commissioner Common of Inland Income and the Inspector Common of Police. The Minister of Finance may also appoint three extra members. As soon as the Board is in place, the authority’s operational begin date will probably be formally introduced, and it’ll start overseeing the trade.
As well as, the GRA may have the authority to have interaction each native and worldwide consultants, guaranteeing that it’s geared up to deal with the complicated regulatory duties forward. The involvement of worldwide specialists will probably be essential in addressing the challenges posed by each land-based and on-line playing sectors.
Supply:
Playing Regulatory Authority to be arrange by subsequent June, themorning.lk, October 19, 2025.
