Sri Lanka's gambling regulator promises to publish regulations for casinos, bookmakers and online gambling by December 31, 2026. Director General Wikramasinghe said an international advisory group drafted the rules, a committee reviewed them, and they have now returned to the regulator for finalization.
Act No. 17 of 2025 (the law text) took effect on December 1, 2025, and created a single regulator for casinos, betting and online gambling. The publication of the regulations has already been postponed. The authority missed its original June 30 target. The November 30 deadline was a different one: the authority expected to reach full operation by that date.
Publication does not complete the process. The regulations must be submitted to parliament for approval within three months of publication.
At a July session of the parliamentary committee, the tax authority named six licensed casinos, five of which are operating, and 37 licensees for sports and horse race betting. However, the authority had no registered online casinos.
For the online segment, this is the main problem. The law requires a separate license for digital gambling, but many of its provisions depend on subordinate regulations. The first package is expected to cover licensing and fees, online gambling, AML controls and the game types permitted by law.
The financial context has already changed. From January 1, 2026, the levy rate on gross fees rose from 15% to 18%, applying to operators whose monthly levy exceeds LKR 1 million, or about $3,000. Casino entry for Sri Lankan citizens rose to $100 from the previous $50. In 2024, according to the tax authority's annual report, the state received LKR 14.91 billion, or about $45 million at the exchange rate as of November 3, 2026.
Harsha de Silva, chairman of the parliamentary committee on public finance, criticized the delay. In his words, the regulator exists, but the regulations do not. He also said foreign online operators are working without proper financial oversight.
The next checkpoint is December 31. The authority must publish the regulations for the third time; after that, the document goes to parliament.
