The Committee on Public Finance (CoPF) recently held a meeting. There, concerns about illegal online casinos operating in Sri Lanka were voiced.
Dr. Harsha de Silva, the committee's chair, emphasized the urgency to address this issue. Consequently, a letter was directed to the Finance Minister for immediate attention.
A meeting led by Dr. de Silva discussed the lack of casino regulation in the country. Officials from the Finance Ministry and the Central Bank of Sri Lanka also recognized this significance. They agreed on the need to establish a regulator to tackle industry-related issues.
Dr. de Silva pushed officials to fast-track laws to create a regulatory authority. He highlighted its role in drawing foreign investment and facilitating government revenue collection from casinos.
Following these discussions, the Committee reviewed and approved rules under the Casino Business (Regulation) Act No. 17 of 2010.
Notably, Sri Lanka's Cabinet of Ministers approved the establishment of a Gambling Regulatory Authority last year. This authority was slated to oversee the country's gambling industry. It was also entrusted with ensuring the correct collection of tax revenues.
At the time, the government aimed to ensure full tax collection and combat illegal activities. They also wanted to reduce potential dangers tied to gambling.
Reports indicated that the regulator would give licenses for up to 20 years. Casinos would face a 40% profit tax and an annual license fee of Rs 500 million ($1.3 million).
Earlier this year, Sri Lanka altered its casino licensing rules. They set minimum investment limits and revised fee structures. This change, effective from January 1, 2024, represented a change in the country's approach to integrated development. This happened after receiving ten casino applications.
Right now, Sri Lanka operates six casinos: Bally’s, Bellagio, Casino Marina, Stardust, Continental Club, and The Ritz Club.
President Ranil Wickremesinghe issued the amended Casino Business Licensing Regulation No. 01 of 2022. As the Minister of Finance, his goal is to boost accountability and sustainability in the licensing process.
