The Committee on Public Finance (CoPF) of Sri Lanka recently approved the import application for casino equipment, with government officials stating that this decision is part of a fiscal strategy to boost tax revenue and accelerate economic recovery.
According to Sri Lanka's Daily Mirror, CoPF member Ravi Karunanayake emphasized that the approval was based on an assessment of the potential tax contributions of casinos. He pointed out that the committee's focus is solely on fiscal benefits, not on the potential negative social impacts of gambling. "We only assess how much revenue the country can generate from it," he stated.
This decision marks a gradual lifting of import restrictions implemented during the severe economic crisis. According to regulations, the imported casino equipment will be dedicated to registered tourism promotion agencies and related tourism facilities, serving foreign visitors.
CoPF Chairman Harsha de Silva announced in another media briefing that the government will establish a special monitoring mechanism for the import process to ensure that each piece of equipment can be effectively tracked. He noted that the current easing of restrictions is aimed at stimulating tourism and tax revenue, but as casino equipment is highly sensitive, strict monitoring procedures must be established.
Sri Lanka's current casino regulatory framework primarily relies on the Gaming and Betting Tax Act of 1988 No. 40 and the Casino Control Act of 2010 No. 17. However, these laws have loopholes in their actual implementation. To strengthen regulation, the government passed the Gambling Regulatory Authority Act at the beginning of 2024, which aims to unify the regulation of land-based casinos and online gambling, introducing key compliance requirements such as Anti-Money Laundering (AML) and Know Your Customer (KYC), while promoting responsible gambling.
Despite the enactment of the law, de Silva still expressed concerns about the actual level of regulation in the casino industry, particularly regarding high-stakes gambling tours (commonly known as "VIP groups") and numerous unregulated online gambling platforms. He warned that without timely measures, the government might legislate to expand the gambling business with inadequate regulation.
He suggested taking reference from Singapore's dual regulatory system, believing that the country provides a valuable example of balancing commercial casino operations with public regulation.
Overall, the lifting of the ban on importing casino equipment in Sri Lanka reflects the government's delicate balance between economic recovery and risk control. How effective future regulatory enforcement will be will determine whether this policy can enhance fiscal revenue while avoiding social costs.
