Sri Lanka Aims to Launch Gambling Regulatory Authority by June 2026

Sri Lanka is fast-tracking the establishment of its Gambling Regulatory Authority (GRA). The body was approved through August legislation to address mounting fiscal gaps in the $1.2 billion gaming sector. Confirmation from parliament comes with a June 30, 2026 target for the body to be operational.

GRA is designed to streamline oversight of digital platforms, which account for 60-70% of casino activity per Committee on Public Finance (COPF) data. Since physical venues attract less than half of players, officials emphasize urgent modernization of tax mechanisms to capture revenue from the online market.

Broad Sector Standards

GRA will spearhead Sri Lanka’s tax collection oversight and operation transparency protocols while rooting out illegal operations in digital and physical gaming spaces. The agency’s scope includes enforcing standards that align local casinos with global anti-money laundering standards ahead of its 2026 FATF evaluation.

The regulator will be implemented in multiple phases, with lawmakers currently drafting detailed compliance frameworks. They will define licensing tiers, violation penalties, and consumer safeguards. Security state revenues and mitigating social risks remain the top priorities.

Global Expertise Applied

COPF Chairman Dr. Harsha de Silva confirmed plans to engage international specialists in designing GRA’s structure. Singapore’s proven regulatory framework will serve as the main reference. This collaboration aims to transform the nation’s online gambling sector from a legal gray zone to a compliant industry under centralized oversight.

GRA will prioritize registering undocumented digital platforms, which account for most gaming activity. Analysts note that this structural change could recover millions in untapped revenue, aligning Sri Lanka with global competitors.

Fueling Tourism

Sri Lanka’s economic revival plan links gaming expansion to its goal of deriving 10% of GDP from tourism. It plans to use high-end attractions like Colombo’s $400 million City of Dreams casino resort, which launched in August. Operated by Melco Resorts, the complex targets India’s affluent travelers. CEO Lawrence Ho calls Sri Lanka “India’s Macau,” given its geographic and cultural proximity.

Other financial reforms aligning with GRA’s approval include an increase in gaming tax from 15% to 18%. Citizen entry fees also doubled to $100, which is projected to generate $120 million in revenue. GRA’s oversight mechanics plan to balance tourism-driven growth with responsible standards.