A significant shift is underway in Sri Lanka’s gambling landscape, marked by a formal announcement to casino operators just before the new year. The Inland Revenue Department issued a notice detailing substantial increases to key levies, set to take effect in 2026.
These changes stem directly from amendments to the Betting and Gaming Levy Act of 1988, updated through the Betting and Gaming Levy (Amendment) Act of 2025. The legislation signals a clear intent to reshape how gaming businesses operate within the nation’s borders.
The most visible change will be a doubling of the casino entrance levy, jumping from $50 to $100 for each visitor. Simultaneously, the gross collection levy – a percentage of overall revenue – will rise from 15% to 18%, impacting profitability for larger operations.
The official notice explicitly states that every individual entering a gaming establishment will be subject to the $100 levy, payable in US dollars or its equivalent. This applies to Sri Lankan citizens beginning January 1, 2026, marking a definitive change in access costs.
Beyond the entrance fee, the increased gross collection levy will target businesses generating over 1 million Rupees monthly. This tiered approach suggests a focus on larger, more established gaming enterprises.
The latter half of 2025 witnessed a period of considerable evolution for Sri Lanka’s gambling sector. President Anura Kumara Dissanayake initiated a comprehensive overhaul of the regulatory framework in June, aiming for greater control and transparency.
A newly empowered Gambling Regulatory Authority assumed full oversight of all gaming operations on December 1st. This authority now functions as the single, independent body responsible for regulating the entire industry, wielding broad authority over its activities.
President Dissanayake’s election was largely built on a platform of combating corruption and dismantling organized crime. Illegal gambling practices were identified as a key target, fueling the drive for these sweeping reforms.
The proposed gambling reform bill gained crucial approvals from both the Attorney General and the cabinet as early as February 2025, demonstrating strong support for the changes. This swift progression indicates a determined effort to modernize and regulate the sector.
These changes represent more than just financial adjustments; they signify a fundamental shift in Sri Lanka’s approach to gaming, prioritizing control, revenue, and a crackdown on illicit activities.
