Sri Lanka Delays Introduction of First Gambling Regulations Under New Unified Regulatory Framework

Sri Lanka's plans to introduce the first regulations under its newly established unified gambling regulatory framework have been pushed back after authorities failed to meet their June 30 deadline and did not announce a new timetable for implementation. The proposed regulations are still undergoing review by experts before they can advance through the remaining stages of the legislative process. Once the review is completed, the draft regulations must be submitted to the Attorney General's Department, followed by Cabinet approval, publication in the Government Gazette, and eventual parliamentary approval, according to The Sunday Morning.

The initial package of regulations is expected to establish the framework governing licensing requirements and fee structures, online gambling operations, anti-money laundering measures, and a ministerial order that will specify the forms of gambling permitted under Section 19 of the Gambling Regulatory Authority Act.

According to the report, the first draft of the regulations was prepared by an international consultant. However, the need for additional technical reviews and vetting has extended the timeline for completion. The Sunday Morning, citing the acting director general of the Gambling Regulatory Authority (GRA), reported that these additional assessment requirements have delayed the rollout beyond the authority's original schedule.

The Gambling Regulatory Authority had initially planned to publish the first set of regulations by June 30 and expected the regulator to become fully operational by November 30, 2026. Those targets have now been delayed as the review process continues.

GRA Acting Director General Gaya Adikari also informed Sri Lanka's Committee on Public Finance that a Cabinet-appointed committee of experts was examining the draft regulations. According to an earlier report by The Morning, the committee's recommendations were anticipated by the end of July as part of the ongoing review process.

During discussions before the Committee on Public Finance, both GRA Chairman Wasantha Nawaratne Bandara and Acting Director General Adikari acknowledged that existing gambling operators had not been consulted while drafting the proposed regulations. Committee Chairman Harsha de Silva cautioned that postponing consultations with industry stakeholders could further delay the implementation of the regulatory framework by extending the review and approval process.

The authority also indicated that it expects to appoint a permanent director general in early August, a move anticipated to strengthen the leadership of the newly established regulator as it works toward finalizing the regulatory framework.

International expertise is also expected to play a role in the implementation process. According to Ceylon Today, a representative from the UK Gambling Commission is scheduled to visit Sri Lanka on August 10, while specialists from the European Union Global Facility on Anti-Money Laundering and Countering the Financing of Terrorism are expected to travel to the country later in the month to provide additional support and technical assistance.

The Gambling Regulatory Authority Act No. 17 of 2025 received certification on September 3, 2025, and officially came into force on December 1 of the same year. The legislation established a single regulatory authority responsible for overseeing land-based casinos, online gambling platforms, offshore gambling operations, and betting activities throughout Sri Lanka. However, many of the Act's provisions cannot be fully implemented until the supporting regulations are finalized, approved, and brought into effect.

By fLEXI tEAM