Sri Lanka’s supplementary gambling regulations, due by 30 June, are now expected only in October, with the draft still under review by a special committee. The delay leaves the country’s new gambling framework short of the supplementary rules officials say are still needed.
Inside Asian Gaming reported that General Gaya Adikari, acting director of the Gambling Regulatory Authority, said the first phase should define authorised gambling, licensing, online gambling and anti-money laundering under Section 19 of the ministerial order. He said the expert committee was expected to bring forward observations and recommendations by the end of this month.
The Gambling Regulatory Authority Act, No. 17 of 2025, came into effect on 1 December 2025 after being certified on 3 September. Conventus Law said the act was meant to establish the regulator and replace older laws, including the Betting on Horse-Racing Ordinance, the Gaming Ordinance and the Casino Business (Regulation) Act of 2010. It also sets penalties for gambling without a valid licence, including a fine of up to LKR 10 million, imprisonment for up to two years, or both.
In a broader take on the reform, Shaun McCamley of Euro Pacific Asia Consulting said the new law replaces fragmented oversight with “one rulebook, one referee”. He said the shift from negotiated to monitored compliance could be positive, but warned that institutional capacity under political and fiscal pressure is the biggest obstacle in the first year.
The report says the committee reviewing the rules lacks industry expertise and has not consulted industry or government, raising concern that publication may not end the delay. Officials are also unsure how to enforce the act because it does not explicitly empower the relevant authority to take enforcement action.
GRA chairman Wasantha Nawarathna Bandara said Sections 15 and 16 require a valid licence and a legally registered Sri Lankan entity before services can be offered, and on that basis he said current online gaming operations are “entirely illegal”. The report says no online casino operators have been registered with the Inland Revenue Department.
Inspector General of Police Priyantha Weerasooriya said police cannot prosecute these offences directly under the Gambling Regulatory Authority Act and have been using the Cybercrimes Act where possible. He said effective enforcement depends on the gambling regulator introducing the necessary regulations.
There are 37 licensed operators in the sports betting and horse racing category, and six licensed casino operators, five of them currently operating. Many online gaming platforms in Sri Lanka do not process transactions through the formal banking system and rely largely on crypto.
Sri Lanka’s Financial Intelligence Unit separately requires casinos to apply AML/CFT controls once customer transactions reach the equivalent of US$3,000, appoint a senior compliance officer and carry out an ML/TF risk assessment.
