Sri Lanka’s gambling regulations, meant to be published by 30 June, are now expected to only be finalized by October, with a draft still under review by a special committee.
As cited by local media outlet The Morning, General Gaya Adikari – Acting Director of the Gambling Regulatory Authority (GRA), said, “Under the first phase, we expect Section 19 of the ministerial order to define authorized gambling, regulation for licensing, online gambling and anti-money laundering. We expect the expert committee to come up with the observations and recommendations at least by the end of this month.”
However, there are concerns about further delays even after publication of the regulations given the lack of industry expertise on the review committee and its failure to even consult with industry or the government.
While the Gambling Regulatory Authority Act, No 17 of 2025 came into effect on 1 December 2025, it requires the supplementary regulations under discussion in order to become operational.
Concerns over illegal operators
Setting the regulations is only the part of the problem, with officials concerned about how they will actually be enforced.
The Deputy Commissioner of the Department of Inland Revenue, Kumara Dharmawardena, indicated that there are currently 37 licensed operators under the sports betting and horse racing category of wagering business, while there are six licensed casino operators with five currently in operation.
While the law allows for online gaming, the official noted that, “As far as our records are concerned, no online casino operators have been registered with the Inland Revenue Department.”
The official warned that a significant number of online gaming platforms are present in Sri Lanka but “they do not process transactions through the formal banking system” and rely largely on crypto.
GRA Chairman Wasantha Nawarathna Bandara, PC, noted that “Section 15 of the Gambling Regulatory Authority Act clearly states that no person or company can operate gambling activities without a valid license. Section 16 further requires every gambling operator to establish a legally registered entity in Sri Lanka before offering such services.” As such, the current online gaming operations in the country are “entirely illegal.”
However, authorities are unsure of how to tackle the problem, as the Inspector General of Police has sought advice from the Attorney General’s Department on what enforcement can look like.
“The act does not explicitly empower the relevant authority to take enforcement action … it is essential that these offenses are investigated. While the law clearly prohibits unlicensed gambling operations, there are practical challenges in enforcing the existing legislation.”
Inspector General of Police Priyantha Weerasooriya noted that, “because we are unable to prosecute these offenses directly under the Gambling Regulatory Authority Act, we have been taking action under the Cybercrimes Act where possible. However, for effective enforcement the gambling regulatory authority must introduce necessary regulations.”
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