Sri Lanka gambling regulator operational rollout delayed: Report
Sri Lanka’s long-awaited gambling regulator remains unable to begin full operations despite the legal framework already being in place.
According to the Sunday Times, a local media outlet, the country’s Gambling Regulatory Authority (GRA) is legally established under the Gambling Regulatory Authority Act but has missed its parliamentary deadline of 30 June 2026 to become operational. The delay leaves the South Asian country without a fully functioning regulator as it seeks to modernise oversight of casinos, betting and online gambling while improving tax collection from the sector.
The report said the recruitment process for the GRA’s Director General remains incomplete even though applications closed in May, with executive appointments still being processed.
While the Inland Revenue Department continues collecting the 18 per cent Gross Collection Levy and the $100 casino entrance levy from land-based casinos, the regulator is not yet able to perform its broader licensing, supervisory and enforcement functions.
Committee warns of enforcement gap
The Committee on Public Finance (COPF) has raised concerns over the stalled rollout, warning that delays have left the government unable to regulate or properly tax offshore online gambling operators serving Sri Lankan customers.
According to the Sunday Times report, the committee found that more than 40 local payment channels are being used by offshore gambling platforms while billions in potential state revenue remain beyond the reach of regulators because of the absence of an operational authority.
Although the Gambling Regulatory Authority Act established an independent regulator, the agency cannot fully enforce gambling laws or prosecute illegal operators because supporting regulations have yet to be completed. The report said that several legal questions regarding enforcement powers and regulatory oversight have also been referred to the Attorney General’s Department, with authorities still awaiting formal guidance before proceeding.
The committee said the gambling sector has the potential to generate substantial government revenue but warned that regulatory delays continue to undermine that objective.
Offshore gambling remains outside oversight
The report said Sri Lanka’s existing gambling legislation was designed primarily for land-based casinos and does not provide an effective framework for regulating online gambling.
Without a fully operational regulator, law enforcement agencies have relied on other legislation, including the Cyber Crimes Act, to pursue action against illegal online gambling platforms where possible. However, officials have acknowledged that this approach cannot replace a dedicated gambling regulatory framework.
Delay follows earlier concerns
The latest developments follow earlier reports that Sri Lanka’s regulatory framework would not be completed by the original June deadline. Local media previously reported that authorities now expect the supporting regulations to be finalised around October following further review by an expert committee.
Officials have said the first phase of regulations will cover licensing, authorised gambling activities, online gambling and anti-money laundering measures before the regulator becomes fully operational.
Authorities have also acknowledged concerns about how illegal online gambling operators can be effectively prosecuted under the existing law, particularly those operating outside the country’s formal banking system and relying on cryptocurrency transactions.
Government officials have previously indicated that while online gambling is permitted under Sri Lankan law, no online casino operators have yet been registered with the Inland Revenue Department.
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