The casino industry in Sri Lanka is experiencing rampant growth, while the regulatory system has been absent for a long time. The Committee on Public Finance (CoPF) recently publicly criticized the Ministry of Finance and the Attorney General's Office for delaying the drafting of the "Gambling Regulatory Authority Act" for many years with no substantial progress. This bill was originally intended to establish a modern regulatory framework for the rapidly expanding casino industry, but it still uses outdated laws from 1988 and 2010.
Dr. Harsha de Silva, the chairman of CoPF, pointed out that the committee had long recommended that the government draw on the experience of mature markets such as Singapore, but over the years, these recommendations have been largely shelved. What has sparked even more public debate is that Sri Lanka's first integrated resort, "City of Dreams" casino, has officially opened without a regulatory body in place, and it was granted a 20-year business license in one go.
According to CoPF, this long-term license was approved during the presidency of Ranil Wickremesinghe, which completely contradicts the stance previously stated by the parliament that "no new licenses should be issued before the establishment of the regulatory authority."
The Ministry of Finance had promised to establish the Gambling Regulatory Authority (GRA) by September 2023, then postponed it to March 2024, but so far, there has been no sign of implementation. The Attorney General's Office's review of the bill has been delayed for up to 15 months, leading CoPF to state that "such delays can no longer be accepted."
Currently, major casinos including Bally’s, Bellagio, Casino Marina, and Stardust still operate on temporary registration licenses issued in 2013, with almost no regulation of industry cash flows, especially online platforms.
The parliament urges that the bill must be pushed through immediately, and a regulatory body established, to plug the legal loopholes in the casino industry and avoid the awkward situation of "issuing licenses before regulation" from continuing.
