Sri Lanka CoPF clears Social Security and Gaming Levy amendment bills
Sri Lanka’s Committee on Public Finance (CoPF) has approved the Social Security Contribution Levy (Amendment) Bill and the Betting and Gaming Levy (Amendment) Bill during its recent meeting held in Parliament on 17 November, chaired by Member of Parliament Dr Harsha de Silva.
Officials attending the meeting explained that the Social Security Contribution Levy (Amendment) Bill introduces four key amendments to the Social Security Contribution Levy Act No. 25 of 2022. These amendments were discussed at length by the Committee. After the discussion, the CoPF granted its approval for the changes to go ahead.
The amendments support the government’s work to modernise its revenue framework. Their approval allows the proposed changes to the 2022 Act to proceed to the next stage.
Higher taxes on gaming and betting activities approved
The Committee also approved the Betting and Gaming Levy (Amendment) Bill, which seeks to amend the Betting and Gaming Levy Act No. 40 of 1988. The changes include increasing the gross collection levy for bookmakers and gaming operators from 15 percent to 18 percent. The casino entrance levy for Sri Lankan citizens will rise from US$50 to US$100.
These increases are aligned with the government’s fiscal plans for 2025, which call for higher contributions from the gambling and entertainment sector. The Committee gave its approval after reviewing the proposals in detail.
An order issued under the Finance Act No. 11 of 2004 was also approved. This order extends the validity period for the payment of the International Telecommunication Operators Levy.
Excise licence fee rules held back
The Committee further considered the Rules regarding the Exercise Licence Fee under Section 32, read with Section 25 of the Excise Ordinance (Chapter 52). However, approval was not granted for these rules.
Dr Silva instructed officials to provide a proper analysis to the Committee. Once this analysis is submitted, the matter will be reconsidered at a future meeting.
Deputy Ministers Dr Kaushalya Ariyaratne and Nishantha Jayaweera, Members of Parliament Ravi Karunanayake, Attorney-at-Law Chitral Fernando and Attorney-at-Law Lakmali Hemachandra were among those who attended the session.
Dr Silva warns of urgent gaps in online gambling regulation
Member of Parliament and Committee Chair Dr Silva also commented on the wider regulatory landscape through a public statement. Taking to LinkedIn, he highlighted several concerns about Sri Lanka’s lack of oversight in the digital gambling sector. He stated: “The recent CoPF meeting laid bare the stark reality of Sri Lanka’s gambling regulation vacuum – especially in the online space.
“While we debate small tax tweaks on physical casinos, a far larger, completely unregulated digital industry is growing unchecked.”
He outlined five urgent issues related to youth exposure, lost state revenue, lack of regulatory readiness, misplaced policy priorities and the need for a rapid shift in focus. He added, “This is not about moral judgment on responsible adult recreation. It is about responsible governance. We still have time to get this right – but not much.”
Regulatory changes ahead of new gambling authority
This week, the government announced that Sri Lanka is preparing to enforce the Gambling Regulatory Authority Act, No. 17 of 2025, on 1 December. President Anura Kumara Dissanayake issued the relevant gazette on 16 November. The announcement comes ahead of SiGMA South Asia 2025, which will be held in Colombo from 30 November to 2 December and is expected to highlight Sri Lanka’s growing place in the region’s digital and gaming economy.
The Gambling Regulatory Authority Bill was passed in Parliament on 19 August 2025 and certified by Speaker Dr Jagath Wickramaratne on 3 September 2025. Under the gazette, the Act will come into operation from 1 December.
The Act replaces three existing laws and creates a single regulator, the Gambling Regulatory Authority, which will oversee online and offline gambling, offshore gaming activities and gaming on board ships. The Authority will set social responsibility rules and have the power to issue, suspend and revoke licences.
Existing casinos, including Bally’s, Bellagio, Casino Marina and Stardust, will now fall under the GRA’s oversight.
Ongoing reforms in a competitive regional market
Sri Lanka’s gambling sector was valued at $293.93 million in 2020 and is expected to grow to $410.04 million by 2026, even as competition increases from countries such as the UAE and Thailand.
The sector has gained renewed attention following the opening of City of Dreams Sri Lanka (CoDSL) on 2 August 2025. The integrated resort, developed by John Keells Holdings and Melco Resorts and Entertainment, reported reaching earnings before interest, tax, depreciation and amortisation (EBITDA) break-even for the quarter ending 30 September 2025 due to strong hotel occupancy, steady casino traffic and event bookings.
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