Sri Lanka lifts casino equipment ban amid push for stronger gambling regulation

Sri Lanka’s Parliament Committee on Public Finance (COPF) has approved the import of casino machines, ending a ban in place since the country’s economic crisis. The decision follows the introduction of the Gambling Regulatory Authority Bill, aimed at tightening control over gambling operations.

COPF Chairman Harsha de Silva said that the government approached the committee seeking the removal of import restrictions that had been imposed during the crisis. “I realised that Casino equipment was also in that list,” he said. “So with the concurrence of the committee, I directed them to create a special mechanism to monitor every casino machine to be imported.”

De Silva also criticized the current bill for lacking key regulatory provisions. "The law is only to establish the regulator, but regulations must be legislated to manage the operations of the casinos," he stated.

He then pointed to Singapore as a model, where two separate laws govern the regulator and casino operations. “My worry is that the government is going to legislate junket operations, but with no regulations to monitor,” the chairman said. "The other major issue is with online casinos with no regulation and no tax.”

COPF member and former Finance Minister Ravi Karunanayake added that the committee’s focus was revenue generation. “It is not our duty to assess the harmful effects of the move. We could only see how casinos could help the government earn revenue,” he said. “This is why the approval was given.”

The import ban was introduced under the Casino Business Regulation Act No. 17 of 2010. The government now wants to integrate gambling into its tourism and economic strategy.

The Gambling Regulatory Authority Bill, introduced earlier this year, aims to regulate all gambling—land-based, online, and junket operators—under one authority. The new body will include finance, tax, intelligence, and police officials, plus independent experts. The bill proposes licensing, regulatory standards, anti-money laundering (AML), know-your-customer (KYC) rules, and responsible gambling measures.

Meanwhile, major casino developments are underway. Melco Resorts and John Keells Holdings are building the $1 billion “City of Dreams Sri Lanka” in Colombo. Phase one, featuring hotels and event spaces, opened in October 2024. The second phase, which includes casino operations under a 20-year licence held by Melco’s subsidiary Bluehaven Services, is slated for late 2025.

Moreover, the government also plans to raise gambling-related taxes. Casino entrance fees will double from $50 to $100, and turnover tax will increase from 15% to 18%. Once enacted, the Gambling Regulatory Authority Act will replace outdated statutes with a unified, transparent legal framework, aligning Sri Lanka’s gambling sector with international norms.