Sri Lanka is taking a major step towards formalising its gaming industry with plans to establish a national regulator. The country’s cabinet has approved a proposal for the creation of the Gambling Regularisation Authority, which now moves to parliament for final approval.
The initiative reflects Sri Lanka’s efforts to bring both its growing online and land-based gambling sectors under tighter control. According to a notice published in the Government Gazette on 21 April, the proposed authority would serve as the sole independent regulator, covering everything from sports betting to ship-based gambling.
Gambling Regularisation Authority to Oversee Licensing, Compliance, and Anti-Money Laundering
The draft bill, first approved by cabinet members in February, sets a clear direction for the future of gambling in Sri Lanka. Minister Nalinda Jayatissa emphasised that the new body will be “the sole national regulator with a broad mandate.” Its responsibilities would extend across all forms of gambling, including licensing, taxation, and enforcement of anti-money laundering measures. 
The move comes after repeated calls from the Sri Lanka Committee on Public Finance to implement stricter oversight mechanisms. Among the key concerns highlighted was the need to ensure that online operators meet their regulatory obligations, an issue raised notably by MP Harsha de Silva.
The bill has already been cleared by the attorney general, paving the way for legislative debate and potential adoption.
Land-Based Gaming in Sri Lanka Expands with City of Dreams Sri Lanka
On the land-based front, Sri Lanka’s gaming industry is also evolving. Currently, operations are limited to a single integrated resort in Colombo Port City. Last October, Melco Resorts & Entertainment opened Phase 1 of the $1.2 billion City of Dreams Sri Lanka project, located within the city’s special economic zone.
Phase 2 of the development, which will feature the country’s first casino, is scheduled to open in the third quarter of 2025. Melco was granted a 20-year gaming licence by the Sri Lankan government last month, signaling growing confidence in the sector’s long-term viability.
As the country works to regulate and expand its gaming footprint, the new Gambling Regularisation Authority could serve as a key pillar for structured growth and international investment attraction.
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