The Finance Ministry and the Department of Inland Revenue have agreed to implement the Public Finance Committee’s recommendation to establish a Gambling Regulatory Authority by June 30, 2026, to formally regulate the casino industry in Sri Lanka.
The decision was discussed during a meeting of the Committee on Public Finance (COPF) held in Parliament, chaired by MP Dr. Harsha de Silva.
During the meeting, it was revealed that 60% to 70% of casino users in Sri Lanka now engage with online casinos, while only 30% to 40% frequent physical casinos. Officials also disclosed that no system currently exists to collect tax revenue from online casino operations, resulting in a significant loss of potential state income.
Dr. de Silva stressed the need to establish the authority swiftly, noting that Sri Lanka’s progress will be reviewed by the Financial Action Task Force (FATF) on anti-money laundering and counter-terrorism financing compliance next year. He said that creating a regulatory body would help formalize casino operations and improve tax collection.
The Committee also proposed obtaining foreign expertise to help set up the regulatory framework for the new authority.
Officials from the Finance Ministry informed the committee that nominations have already been called for a seven-member board to oversee the authority, after which a Chief Executive Officer will be appointed to lead its operations.
At present, six casino licenses have been issued for physical establishments, but online casino operations remain unregistered and untaxed despite their growing popularity. (Newswire)