Significant revenue loss to the government due to the delay in implementing the Casino Regulatory Authority

Although international media has reported that Sri Lanka has become a hub for online fraud, the government has so far failed to formulate the necessary regulatory framework to operationalize the Casino Regulatory Authority. It was revealed at the Public Finance Committee that the government is losing a significant amount of tax revenue due to illegal and unregulated online as well as physical gaming activities taking place in the country.

The Chairman of this Committee, Member of Parliament Dr. Harsha de Silva, inquired from the officials of the Casino Regulatory Authority about the reasons for not implementing regulations to bring the Authority to an operational level. The MP pointed out that regulatory activities should have been carried out in several phases, and the regulations for the first phase should have been implemented and completed before June 30, 2026.

However, it was confirmed that no regulations have been enforced so far. The officials stated that the relevant regulatory drafts for operating gaming businesses, including casinos, have been finalized. They mentioned that these regulations, prepared by modeling systems in three countries including Singapore, have now been submitted to an expert panel.

Through these regulations, measures for licensing, online gaming control, and prevention of money laundering are to be introduced. A UK expert is scheduled to visit the country next month to provide necessary advice to strengthen this sector, and assistance from the European Union's Global Facilities Centre is also expected to strengthen the anti-money laundering framework.