Sri Lanka gambling regulator misses June deadline

• Sri Lanka’s Gambling Regulatory Authority missed its June 30 target to publish the first regulations under the new unified gambling framework, with full operational status now pushed toward November 30.
• The draft rules cover licensing, online gambling, anti-money laundering controls and a Section 19 ministerial order defining authorised gambling.
• A Cabinet-appointed expert committee is still reviewing the draft, and existing operators have not yet been consulted.

Sri Lanka’s Gambling Regulatory Authority has missed its June 30 target to publish the first set of regulations under the country’s new unified gambling framework, and has not set a revised date.

The authority had separately aimed to be fully operational by November 30, 2026. The rules remain under expert review before advancing to the Attorney General’s Department, Cabinet approval, gazette publication and parliamentary approval.

Review process extends

An international consultant prepared the initial draft, but additional vetting requirements have prolonged the process, according to The Sunday Morning, which cited the acting director general of the Gambling Regulatory Authority (GRA).

Gaya Adikari, acting director general of Sri Lanka’s Gambling Regulatory Authority, told The Morning:

“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.”

The package also covers licensing fees and anti-money laundering controls, as Sri Lanka works to meet international AML expectations tied to its financial sector oversight.

A Cabinet-appointed expert committee was expected to deliver recommendations by the end of July, though a 19 July report from Asgam.com suggests full finalisation has since drifted toward October.

Operators left out

GRA Chairman Wasantha Nawaratne Bandara and Adikari have acknowledged that the authority has not consulted existing gambling operators on the draft regulations.

Committee Chairman Harsha de Silva warned that delaying stakeholder consultation could slow the framework’s introduction even further, and industry observers have separately raised concerns about the level of gambling-specific expertise on the review panel.

That gap is notable given how fast the market has moved without formal oversight. An estimated 60% to 70% of Sri Lankan gambling activity already happens online, largely outside any licensing or tax regime.

The land-based segment, six smaller gaming halls plus the City of Dreams integrated resort, has operated under interim rules since the sector’s tax hikes were approved. Locals already absorbed a steep cost increase when Sri Lanka doubled casino entry fees and lifted the betting levy to 18%, making the absence of a parallel conversation with operators harder to justify from an industry standpoint.

Support on the way

The GRA expects to appoint a permanent director general in early August. A UK Gambling Commission representative is scheduled to visit on August 10. Experts from the EU Global Facility on anti-money laundering and counter-terrorism financing are also expected during the same period, according to Ceylon Today.

The Gambling Regulatory Authority Act No. 17 of 2025 was certified on September 3, 2025, and took effect on December 1. It created a single regulator covering land-based casinos, online gambling, offshore operations and betting, but the supporting regulations are still required before most of its provisions can be enforced.

Every month the rules stay in draft is a month the online segment, already the larger share of the market, keeps operating without a formal licensing or tax structure.

August’s visits from UK and EU specialists give the GRA a chance to close that gap, but only if the recommendations they help shape make it past a committee that operators still have no formal channel into.