Sri Lanka’s new Gambling Regulatory Authority (GRA) is expected to be fully operational by June 30, 2026, according to Dr. Harsha de Silva, Chairman of the Committee on Public Finance (COPF).
The establishment of the GRA follows the passage of key legislation in August 2025. The country moves to strengthen oversight of its gaming sector. This aims to boost tourism revenue — a sector projected to contribute up to 10 percent of national GDP. There is a strong focus on casino operations. In this context, Sri Lanka aims to enhance its tourism appeal.
Regulatory Framework Development Underway
As reported by The Morning, the timeline aligns with COPF recommendations. It aims to fast-track the authority’s formation in compliance with Financial Action Task Force (FATF) anti-money laundering standards. This initiative is part of Sri Lanka’s broader regulatory efforts.
Dr. de Silva explained that while lawmakers have laid the legislative groundwork for the authority, officials must now draft detailed regulations. These regulations will cover licensing, operational conditions, penalties, and compliance protocols. They aim to protect government tax revenues and shield consumers from the risks of unregulated gambling.
The government plans to enlist international consultants to guide the process, taking inspiration from established models like Singapore’s integrated gaming framework.
Focus on Online Gambling Regulation
Dr. de Silva also identified online gambling as a major priority for regulation. He noted that it currently operates outside existing laws and accounts for an estimated 60 to 70 percent of total gaming activity. As such, Sri Lanka is keen on addressing online gambling.
Once operational, the GRA will regulate both land-based casinos and online betting platforms, ensuring full compliance with international financial standards.
A senior official from the Department of Fiscal Policy confirmed that the legal foundation for the GRA has been completed. However, the authority itself has not yet begun operations. This development is critical for Sri Lanka’s regulatory landscape.
Board Structure and Strategic Goals
The upcoming GRA Board will comprise seven members, including key government representatives and three appointees from the Minister of Finance. Once the Board is established, the authority can begin its oversight functions. The legislation also permits the Board to engage local and international experts for regulatory support.
Sri Lanka’s long-term strategy includes attracting Indian high-value tourists. The nation aims to position itself as a regional gaming hub. Lawrence Ho, Chairman of Melco Resorts, which is behind the City of Dreams Sri Lanka casino project, has suggested the country could evolve into “India’s Macau.”
The Department of Tourism aims to welcome 500,000 Indian visitors this year. This represents a 20 percent increase from 2024. It reinforces India’s role as Sri Lanka’s largest source market.
