Sri Lanka approves casino machine imports, eyes regulation
Days after the Sri Lankan government introduced the Gambling Regulatory Authority Bill, 2025 in Parliament to regulate gambling activities, the Parliamentary Committee on Public Finance (COPF) has approved the import of casino machines but directed that a special system be put in place to track them.
COPF Chairman Harsha de Silva said, “The government came to the Committee to remove import restrictions imposed during the crisis. I realised that Casino equipment was also in that list. So with the concurrence of the committee, I directed them to create a special mechanism to monitor every casino machine to be imported.”
Dr. de Silva further raised concerns about gaps in casino regulation. “With regard to the casino regulator, it has so many shortcomings; the law is only to establish the regulator, but regulations must be legislated to manage the operations of the casinos. In Singapore, there are two laws; one is the regulator and the other is to control the casino operations. My worry is that the government is going to legislate junket operations, but with no regulations to monitor. The other major issue is with online casinos with no regulation and no tax,” he added.
COPF member Ravi Karunanayake explained, “The government wanted a ramification. We looked into how it could help earn revenue. Therefore, we have approved it. It is not our duty to assess the harmful effects of the move. We could only see how Casinos could help the government earn revenue. This is why the approval was given.”
The decision ends the ban on importing casino gaming equipment, which was imposed during Sri Lanka’s economic crisis under the Casino Business Regulation Act No. 17 of 2010. The move is aimed at supporting registered tourism promotion institutions and tourist facilities.
Gambling reforms key to tourism, economy
The government hopes to position gambling as part of its broader tourism and economic strategy. The country’s casino business is currently regulated under the Betting and Gaming Levy Act No. 40 of 1988 and the Casino Business (Regulation) Act No. 17 of 2010. However, the regulations for issuing and managing casino licences under these laws have not been fully enforced.
Earlier this year, the government introduced the Gambling Regulatory Authority Bill to create a dedicated authority to oversee all forms of gambling, including physical casinos, online casinos, and junket operators. The bill aims to establish licensing, set regulatory standards, strengthen Anti-Money Laundering (AML) and Know Your Customer (KYC) measures, and promote responsible gambling. The new authority will include senior officials from the Ministry of Finance, Inland Revenue, the Financial Intelligence Unit, and the police, alongside three independent experts.
Casino developments and foreign investment
The push for clearer gambling laws comes as Sri Lanka’s casino and entertainment sector continues to attract major investment. Melco Resorts & Entertainment, along with John Keells Holdings, is developing City of Dreams Sri Lanka in Colombo. The USD 1 billion integrated resort, South Asia’s first of its kind, opened its first phase in October 2024, with hotels, restaurants, and event spaces. The second phase, due in late 2025, will include casino gaming operations, backed by a 20-year casino licence held by Melco’s subsidiary, Bluehaven Services.
Boosting tourism and government revenue
The government believes that strengthening gambling regulation will boost tourism, attract international investors, create jobs, and support economic growth. It has also proposed raising gambling-related taxes, with casino entrance fees set to double from $50 to $100, and gambling turnover tax increasing from 15% to 18%. Once approved, the Gambling Regulatory Authority Act will replace outdated laws and provide a single framework to regulate the sector in line with global standards.
By creating a clearer, more accountable gambling environment, authorities hope to build public trust and ensure gambling contributes responsibly to Sri Lanka’s economy.
