Sri Lanka’s GRA nears swift launch as industry eyes growth
Sri Lanka is all set to bring its gambling industry under tighter oversight, with the government aiming to make the Gambling Regulatory Authority (GRA) fully operational by 30 June 2026. The new body is expected to regulate both online and land-based gambling under a single framework, marking a shift from the current system where large parts of the sector, particularly online, remain loosely controlled.
Speaking at the Global Game Connect (GGC) 2026 in Colombo, government representatives said the aim is not only to regulate but also to support the industry’s long-term development.
Deputy Minister of Industries and Entrepreneurship Development Chathuranga Abeysinghe said that Sri Lanka wants to create conditions for innovation and growth. “Technology plus creativity will drive this industry further, and it is a privilege for Sri Lanka to be part of it,” he added.
He further added that the government intended to support both local and international businesses looking to expand in the country. “From a government perspective, we will give our fullest support to drive this industry both here and in the region,” he said.
Online gaming widens
Authorities believe the sector could help the country attract more affluent visitors, especially from nearby markets. Highlighting Sri Lanka’s proximity to India, Sri Lanka’s Deputy Transport Minister Ranasinghe said the island is well placed to serve as a regional base. “We have significant potential for industries like this, particularly for the growing markets next to us, like India,” he noted.
Furthermore, officials say the move comes in response to rapid changes in the market. Estimates suggest that around 60–70 percent of gambling activity in Sri Lanka has shifted online, creating challenges for monitoring transactions and collecting tax revenue.
The government has increasingly linked the gaming sector to wider economic goals, particularly tourism. In recent years, Sri Lanka’s gaming industry has moved beyond small-scale venues, with a growing focus on integrated resorts and high-value travel experiences.
The government has set a target of three million international arrivals in 2026, with gaming expected to play a supporting role. The government aims that the sector could generate around $250 million in annual revenue, while also contributing to state finances through taxation. Recent policy changes reflect that approach. The gaming tax rate has been raised from 15 percent to 18 percent, alongside increases in casino entry levies, as authorities look to strengthen national revenue.
Operators confident over market growth
For many operators, the planned launch of the GRA is seen as a turning point. Businesses attending the GGC summit said clearer rules could make Sri Lanka a more attractive destination at a time when parts of Southeast Asia are tightening restrictions on gambling.
Speaking over the developments with SiGMA News during the GGC Summit, a representative from Diamante Tech, an online casino service provider, said interest in Sri Lanka was already growing. “I can see from the exhibitors and attendees that many are from across Asia, and there is a sense that people are now looking at the Sri Lankan market,”
He further added that the recent policy direction had created fresh opportunities for online service providers. “It is a really good move… and a good opportunity. It is only going to grow,” the representative said.
Despite the optimism, challenges remain. Experts caution that bringing a largely informal online market into a regulated system will require enforcement capacity, technical systems, and cooperation with international partners.
Yet, the government appears focused on building that framework. With the GRA expected to begin operations by mid-2026, Sri Lanka is set to control and capitalise on a fast-changing gaming landscape.
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