On August 21, 2025, Sri Lanka’s Parliament passed the Gambling Regulatory Authority Bill in its second reading, paving the way for comprehensive reform of the country’s gambling sector. Once signed by the Parliamentary Speaker, it will take effect as the Gambling Regulatory Authority Act.

A Unified Regulatory Framework

The law enables the creation of a Gambling Regulatory Authority (GRA)—a centralized body that consolidates multiple outdated laws under one umbrella. It repeals the Horse Racing Betting Ordinance, the Gambling Ordinance, and the Casino Ordinance, streamlining legal governance across all forms of gambling.

Mandate & Mission

Deputy Economic Development Minister Anil Jayantha Fernando highlighted in Parliament that this new regulator will ensure compliance among casinos and address concerns around money laundering risks.

According to the bill, the GRA’s scope includes:

• Collecting gambling-related revenue

• Enhancing transparency and good governance

• Curtailing illegal gambling activities

• Standardizing licensing and operations across the sector

• Minimizing social harm while supporting economic growth and tourism development

Tied to a Landmark Casino Opening

The reform arrives just as Sri Lanka opened its first large-scale integrated resort with casino in Colombo, the country’s capital. The property, branded City of Dreams Sri Lanka, is a joint venture between Melco Resorts & Entertainment Ltd, a global casino operator, and John Keells Group Plc, one of Sri Lanka’s leading developers.

Targeting high-value tourists—especially from neighbouring India—this resort represents a bold step in positioning Sri Lanka as a regional gaming and leisure hub. The timing of the new regulatory bill underscores the government’s intent to create a modern, transparent framework to support such investments and attract international tourism.