Sri Lanka’s Cabinet of Ministers has approved the establishment of a Gambling Regulatory Authority, to be tasked with overseeing the industry and ensuring tax revenues are properly collected.
According to local media reports, the Cabinet approved the proposal previously tabled by Sri Lankan President Ranil Wickremesinghe on Monday, with a bill now set to be drafted around the regulation of all gaming activities.
The reports state that the government is not only seeking to ensure taxes are collected in full but that rules are put in place around the prevention of illegal activities and on minimizing gambling harm.
While it remains unclear exactly what detail will be included in any such draft bill, it has previously been reported that the regulator would issue licenses of up to 20 years in duration, while casinos would face a 40% tax on profits on top of their annual Rs 500 million (US$1.3 million) license fee.
It is unclear whether the establishment of the GRA signals government intentions to expand the country’s casino industry, although it did announce last November plans to open a new casino and entertainment area at the Colombo Lotus Tower.
Sri Lanka currently has five legal casinos, of which three are owned by Dhammika Perera and two by Ravi Wijeratne.