Sri Lanka Takes Decisive Step Toward Gambling Regulation

Sri Lanka is pushing for a landmark policy shift as the Cabinet of Ministers approved a draft bill to establish the country’s first comprehensive gambling regulatory framework. Lawmakers hope the new authority will help curb the proliferation of black market operators, usher in enhanced consumer protections, and ensure the nation receives adequate financial contributions from the sector.

The New Regulator Will Have a Substantial Reach

On Monday, the Sri Lankan cabinet spearheaded the nation’s first Gambling Sports Regularisation Act, clearing the path for the bill to be tabled in Parliament. This highly anticipated move aims to consolidate and modernize regulatory control over all types of gambling activities, including the increasingly controversial online and offshore sectors.

A recent report by local news outlet Daily FT highlighted an official announcement by cabinet spokesman and health minister Dr. Nalinda Jayatissa, who described the bill as a pivotal moment in how Sri Lanka manages its gambling industry. Jayatissa noted that the new authority would have extensive powers, overseeing land-based and online offerings while promoting a fair and equitable industry.

The proposed authority will serve as the sole national regulator with a broad mandate, covering areas such as offshore gambling sports on ships and in the Colombo Port City, online gambling platforms, and offshore casinos.

Health Minister Dr. Nalinda Jayatissa

The bill also reflects the government’s ambitions to elevate Sri Lanka as a respected jurisdiction in the international gaming economy. Government officials hope the legislation will help level the playing field for the nation’s gambling industry, aligning it with international standards and opening the doors for fresh investments in tourist-oriented regulated gambling ventures.

Regulated Gambling Presents Financial Opportunities

This newest push for reforms aligns with growing pressure from the Committee on Public Finance (CoPF), which has repeatedly flagged lax gambling sector oversight as a leading driver of tax revenue losses. While land-based casinos must pay taxes, online gambling platforms, and offshore operators exist in a legal grey area, evading Sri Lanka’s tax and regulatory reach.

The new legislation aims to resolve regulatory discrepancies. It envisions licensing and taxation of all gambling operations targeting Sri Lankan citizens, mandatory compliance reporting and audit requirements, and safeguards against illegal gambling and money laundering. The bill will also introduce consumer protection safeguards and even oversee gambling activities aboard vessels docked in Sri Lankan waters.

This initiative aligns with President Ranil Wickremesinghe’s broader economic reform agenda. As the bill heads to Parliament for debate, it will likely face substantial scrutiny. If passed, Sri Lanka will join a growing list of South Asia nations reaping the benefits of modernized gambling sector regulation.