Sri Lanka Lottery Board opens probe into 12M lottery scam
Sri Lanka’s National Lotteries Board (NLB) has confirmed that it will seek strict legal action against several district agents accused of defaulting on payments worth more than LKR 12 million (approx. €34,000). The list of agents also includes the names of the wife of MP Hesha Vithanage and the sister-in-law of former Minister Akila Viraj Kariyawasam.
At a press briefing held on 29 October 2025 in Colombo, NLB Chairman M.D.C.A. Perera revealed that both allegedly failed to remit funds generated through lottery ticket sales. Perera noted that the largest outstanding amount involves a sales agent from Kuliyapitiya, who has owed nearly LKR 9,878,000 (€28,000) since 2016.
Perera added that several other agents, appointed on recommendations from former ministers Duminda Dissanayake and Navin Dissanayake, have also defaulted on payments. These include unpaid sums of LKR 2,370,000 (€6,970) and LKR 609,000 (€1,790), respectively.
Case handed to fraud department
Investigations are now being handled by the Fraud Investigation Division, with the Criminal Investigation Department (CID) expected to be involved. Under Sri Lanka’s Public Property Act, even non-payment of LKR 100,000 (€294) requires a formal complaint, highlighting the seriousness of the breaches.
Despite the unpaid dues, the NLB stated that it has already fulfilled all obligations relating to prize payouts and taxes, ensuring no disruption to public confidence in the lottery system. The cases are expected to be tabled before the parliamentary Committee on Public Enterprises (COPE) next month, part of efforts to improve governance standards and ensure financial accountability across its licensed network.
Meanwhile, NLB General Manager A.M. Arif responded to circulating social media claims alleging a decline in lottery wins. He rejected the assertions, noting that 41 “super prizes” were issued in 2024, while 40 had already been awarded by September 2025. First-tier prize counts also increased from 881 in 2024 to 1,055 this year, with total prize money paid in 2025 reaching LKR 474 million (€1.39 million) — the highest ever recorded.
Arif said the Board distributes around 3.7 million tickets daily, generating approximately LKR 150 million (€441,000) in revenue per day. He added that LKR 4.4 billion (€12.9 million) worth of prizes were issued in 2024 and LKR 4.1 billion (€12.05 million) in 2025. Social welfare contributions also remain significant, with LKR 32 million (€94,100) allocated to the national Kidney Fund this year, expected to rise further.
Lottery: popular or a lifeline?
The popularity of state lotteries in Sri Lanka has long been entwined with both culture and economic behaviour. Recent research shows that buyers are motivated not only by entertainment but also by perceived financial opportunity, particularly during periods of economic stress. Studies have characterised lottery operations as an important revenue-generation activity for the state, with government records showing LKR 2,079 million (€6.11 million) earned through lottery-derived revenue in 2017.
Several assessments reveal that the Sri Lankan gambling sector, including lotteries, is projected to grow at an annual growth rate of around 5.4 percent between 2025 and 2031. Analysts argue this growth is driven by consistent consumer demand, strong prize structures, and widespread accessibility.
As legal proceedings progress, the NLB maintains that operations remain transparent, prize money is consistently paid, and misleading claims will not be tolerated. The Board says tighter enforcement will safeguard public trust in one of Sri Lanka’s most culturally embedded revenue-producing industries.
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