Sri Lanka’s president is betting on casinos to drive the nation’s tourism revival, aiming to double the sector’s contribution to 10% of GDP after the financial collapse of 2022–2023.
President Anura Kumara Dissanayake, who marks one year in office next month, has made high-end gaming central to his strategy. The plan focuses on attracting affluent visitors from India and China. Tourism accounted for just 4% of GDP last year.
Deputy Tourism Minister Ruwan Ranasinghe said the government wants to raise arrivals by 50% to 3 million in 2025, boosting industry revenue to $5 billion from $3.7 billion.
New Regulator to Oversee Casinos
On August 22, parliament passed the Gambling Regulatory Authority Bill, creating an independent body to oversee gaming operators. The regulator will license casinos, enforce compliance, and apply anti–money laundering rules.
“This is a milestone for tourism and investment,” said Dharshana Weerakoon, a hospitality expert. “An independent regulator ensures transparency and builds investor and public trust.”
Existing casinos will receive time to comply with the new framework.
City of Dreams Opens in Colombo
The $1.2 billion City of Dreams Sri Lanka opened earlier this month, marking South Asia’s first integrated resort. Built by John Keells Holdings and Melco Resorts & Entertainment, the beachfront complex includes 800 rooms, a luxury mall, and conference facilities.
“This is a greenfield market,” said Melco CEO Lawrence Ho. “We are only scratching the surface of Sri Lanka’s tourism and gaming potential.”
Ranasinghe expects India to remain the top tourist source for the next decade, given its limited casino options. China, with restrictions outside Macau, represents another key market. Last year, Indian travelers made up 25% of Sri Lanka’s 2 million arrivals, while Chinese visitors accounted for 7%. Both groups enjoy visa-free entry.
Balancing Growth With Responsibility
Experts caution that casinos must be paired with strong safeguards. Weerakoon warned that weak enforcement could open the door to money laundering and problem gambling.
Critics have also flagged flaws in the law, including excessive powers for the finance minister, weak penalties, and the exclusion of lotteries and tourism industry voices.
Still, the government argues regulation will cut social harm, create jobs, and strengthen investor confidence.
Tourism remains Sri Lanka’s third-largest foreign currency earner after remittances and apparel. The central bank expects the economy to grow 4.5% this year—higher than the World Bank’s 3.5% forecast—thanks in part to tourism momentum.
