The government of Sri Lanka has officially announced the creation of the Gambling Regulatory Authority (GRA), a new national body that will oversee and manage all gambling activity across the country. This marks the beginning of a major reform aimed at making the gaming industry more transparent, properly regulated, and beneficial for the state budget. According to officials, more than half of Sri Lankan players today gamble online, while traditional land-based casinos attract far fewer visitors. As a result, the government has been losing millions in tax revenue, since many online platforms have been operating without licenses or oversight. The new regulator is expected to bring order and accountability to this growing sector.
The GRA will have broad authority to issue licenses, monitor compliance, collect taxes, and combat illegal operations. Its responsibilities will also include tackling fraud, money laundering, and potential links between gambling platforms and terrorist financing. Authorities believe the new system will bring the industry out of the shadows and turn it into a legitimate and controlled source of revenue.
Beyond regulation, the reform carries an important economic goal — to make Sri Lanka a more attractive destination for international tourists. The government hopes that properly licensed casinos will draw players from India, China, and Southeast Asia, boosting tourism and supporting post-crisis economic recovery.
However, not everyone is convinced. Industry experts warn that the new law gives too much power to the Ministry of Finance through the regulator. They also note that some sectors — such as online betting and lotteries — remain insufficiently covered by the new legislation. Critics further argue that the penalties for violations may be too lenient to effectively deter unlicensed operators.
For local businesses, the creation of the GRA sends a clear message: the days of unregulated gambling are over. Companies will now have to either adapt to the new legal framework or risk being pushed out of the market. For the state, this reform opens the door to higher tax revenues, more jobs, and greater international confidence in its economic policies.
In summary, the launch of the Gambling Regulatory Authority marks a turning point for Sri Lanka’s gaming industry. For the first time, the country is taking full control of the gambling sector — transforming it from a loosely regulated, gray-area business into a transparent and lawful industry designed to benefit both players and the national economy.
