Sri Lanka Plans Gambling Authority Formation by 2026

Sri Lanka is gearing up to establish a new regulatory body for gambling to be known as the Gambling Regulatory Authority (GRA), targeted to be operational by June 30, 2026. The announcement comes from Dr. Harsha de Silva, the Chairman of the Committee on Public Finance (COPF), as he detailed plans for a body that will oversee both land-based casinos and online gambling under a cohesive licensing and taxation framework. Such a move aims to reinforce regulation in a sector that has long been in need of oversight.

Navigating Challenges in Online and Physical Gambling

Emphasizing the existing challenge, Dr. de Silva noted that while the foundation legislation for the GRA is ready, specific implementation procedures remain pending. "The legislation to establish the authority is already in place. What we now need are the detailed regulations that will make it operational," stated Dr. de Silva. To bridge this gap, comprehensive regulations and by-laws are necessary to demarcate procedures for licensing, operational conditions, penalties for violations, and measures against non-compliance. Sri Lanka plans to engage international consultants to draw insights from well-regulated regions like Singapore due to the lack of domestic expertise in this specialized area. A significant driving force behind the creation of the GRA is the prevailing lack of regulation in the online gambling arena, which Dr. de Silva identified as a "major grey area." He cited that an estimated 60-70% of gaming in Sri Lanka occurs online, with only 30-40% transpiring in physical casinos, a situation extant legal frameworks fail to address. Despite years of discussion around the need for regulation in this sector, progression has been slow. Dr. de Silva warned about the potential financial and social risks that arise from this legal vacuum.

Progress and Prospects for Regulatory Framework

A senior official from Sri Lanka’s Department of Fiscal Policy revealed that although the legal groundwork for the GRA's establishment is laid, the authority has yet to become active. Reflecting on past legislation, it was only in 2022 that the Casino Business (Regulation) Act of 2010 saw the enactment of its necessary regulations, clarifying the legal infrastructure for the new authority. The proposed GRA structure will be governed by a board comprising seven members, including four ex officio officials: the Commissioner General of Inland Revenue, the Director of the Financial Intelligence Unit, the Inspector General of Police, and the Secretary to the Treasury. These will be complemented by three appointees nominated by the Finance Minister. The formulation of this board will lead to the official commencement date being announced. Moreover, the GRA board possesses the authority to engage both local and international experts to aid its functions. Dr. Harsha de Silva, expressing urgency, called for a swift operational deployment of the GRA, which holds importance not only in gambling oversight but also in aligning Sri Lanka with the expectations of the Financial Action Task Force (FATF). The activation of this authority marks a pivotal step in reinstating Sri Lanka’s standing within the global financial community. As the country paves the path towards a robust regulatory framework, the integration of international standards in anti-money laundering and counter-terrorism financing practices is seen as crucial. Source: “Gambling Regulatory Authority to be set up by next June”, themorning.lk, October 19, 2025 Source: “Gambling Regulatory Authority to be set up by next June”, themorning.lk, October 19, 2025 By GamesAndCasino