Sri Lanka has announced significant tax increases for casino operators and betting and gaming businesses. The changes are set to take effect on January 1, 2026. The measures were confirmed by the Inland Revenue Department (IRD) in an official notice released today.
Casino Entrance Levy Raised to $100
Under the revised framework, Sri Lanka will double its Casino Entrance Levy (CEL) from $50 to $100 per entrant. This is according to local media reports. All casino and gaming operators must collect the levy from each individual entering their premises.
The IRD stated that operators may collect the fee in US dollars, another convertible foreign currency, or the equivalent amount in Sri Lankan rupees. This provides flexibility in payment while maintaining compliance.
Higher Gross Collection Levy for Gaming Businesses
In addition to the entrance levy increase, Sri Lanka will raise the Gross Collection Levy on betting and gaming enterprises from 15% to 18%. The higher rate will apply to gross monthly collections exceeding Rs. 1 million (approximately $3,230).
This adjustment will directly impact bookmakers and gaming operators. It increases their overall tax burden as the government seeks to strengthen fiscal oversight of the sector.
Legal Amendments and Compliance Requirements
The changes follow amendments to the Betting and Gaming Levy Act No. 40 of 1988. These were introduced under the Betting and Gaming Levy (Amendment) Act No. 25 of 2025. These revisions form part of broader efforts to modernize Sri Lanka’s gaming tax regime.
The IRD has urged all affected businesses to comply with the updated levy structure from the effective date and advised operators seeking further clarification to contact the Inland Revenue Department directly.
