Sri Lanka plans 18% GGR tax, doubles casino entry for locals

• The Cabinet has approved raising the betting and gaming levy from 15% to 18% on gross revenue
• Casino entry fees for Sri Lankan nationals will double from $50 to $100 as part of the 2025 budget
• The bill has received Attorney General clearance and will proceed to Parliament for final approval

Sri Lanka’s Cabinet has approved a 2025 budget proposal that will increase the nation’s betting and gaming levy by three percentage points to 18% while doubling casino entrance fees for locals to $100.

The measures represent the government’s latest effort to boost revenue from the gambling sector following the country’s economic recovery programme.

Cabinet Spokesman Nalinda Jayatissa confirmed that the Attorney General had cleared the draft bill for the amendments to the Betting and Gaming Levy Act. The legislation will now be published in the Government Gazette before being forwarded to Parliament for approval.

“Clearance of the Attorney General too has been granted for the draft bill,” Jayatissa said. “The Cabinet of Ministers approved the proposal to publish the draft bill in the government’s gazette notification and subsequently to forward it to the Parliament for its approval.”

Under the current system, betting and gaming operators pay a gross collection levy of 15% on their total turnover or receipts. The new legislation will raise this rate to 18%, potentially generating additional state revenue from all gambling activities across the country.

The casino entry fee increase affects Sri Lankan citizens visiting domestic casino venues, with the charge rising from the current $50 to $100. This doubling of the entrance levy applies specifically to local residents, while foreign visitors remain subject to different fee structures.

The changes come shortly after Parliament passed the Gambling Regulatory Authority Act in September 2025, establishing a single independent regulator for the country’s gambling sector. The new authority oversees licensing, compliance and social responsibility measures across casinos, horse racing and offshore gaming operations.

These regulatory changes form part of Sri Lanka’s broader fiscal recovery strategy following the 2022 economic crisis and default on $46 billion in foreign debt. The government has implemented various revenue-raising measures while working within the framework of a $2.9 billion IMF bailout programme agreed in March 2023.