Detailed overview
Sri Lanka at a glance
Sri Lanka (population approximately 22 million) is recovering from a severe 2022 economic crisis and is modernising both its digital-asset and gambling frameworks. Crypto adoption has grown rapidly — over 1 million crypto users in 2025, projected to 1.2 million by 2026 (some estimates cite ~593,300 users / 2.7% of population on a narrower measure), with a market generating roughly USD 21.1 million in 2025.
Crypto position: no crypto law in force as of May 2026. The legal status:
- CBSL Public Awareness on Virtual Currencies (2018) and subsequent advisories (2021, January 2024 "Protecting the Public from Crypto Investment Scams")
- Cryptocurrency is not legal tender and not recognised as an asset class; investing is not explicitly prohibited (no specific legislation), but use for transactions is restricted under foreign-exchange regulations
- 2021: government banned banks from processing crypto transactions
- July 2025: CBSL Governor announced a task force (CBSL-led, with FIU, Finance Ministry, Digital Economy Ministry) to gather VASP data ahead of Sri Lanka's AML/CFT evaluation
- Late 2025: FIU launched a mandatory survey of all VASPs
- 12 February 2026: Deputy Minister of Digital Economy Eranga Weeraratne presented a Concept Paper for regulating virtual assets to the National Coordinating Committee on AML/CFT
- New laws expected during 2026; the framework will classify virtual assets, regulate VASPs, and introduce travel-rule requirements aligned with international AML standards
- Distinct from the Cyber Security Bill (which is security-focused)
- VASP definition aligns with international standards (exchange between virtual assets and fiat, transfers, custody)
- 2021: government formed a committee to study digital currencies and a potential CBDC; early 2025 a USD 10 million investment was announced to accelerate blockchain and AI
Gambling regime: comprehensively consolidated by the Gambling Regulatory Authority Act, No. 17 of 2025 — passed by Parliament in August 2025 (unanimously), certified by Speaker Dr. Jagath Wickramaratne on 3 September 2025, gazetted by President Anura Kumara Dissanayake on 16 November 2025, and in force from 1 December 2025. The Act:
- Establishes the Gambling Regulatory Authority (GRA) as a body corporate
- Repeals the Betting on Horse-Racing Ordinance, the Gaming Ordinance, and the Casino Business (Regulation) Act, No. 17 of 2010
- Broadly defines "gambling" to include betting, gaming, online gaming, casino, cruise-ship casinos, junket operations, and digital gambling
- Excludes state lotteries (Development Lotteries Board, National Lotteries Board) and "social gambling"
- Covers land-based, online, offshore, and ship-based gaming, including operations within the Port City of Colombo
- GRA board includes the Secretary to the Ministry of Finance, the Commissioner General of Inland Revenue, the Head of the FIU, the Inspector General of Police (or representatives), and three appointed members (3-year terms)
Existing operators — Bally's, Bellagio, Casino Marina, and Stardust — functioning under provisional registrations since 2013 are transitioning to GRA oversight. City of Dreams Sri Lanka (a USD 1.2 billion integrated resort by John Keells Holdings and Melco Resorts & Entertainment, opened 2 August 2025; casino licence granted to Bluehaven Services (Pvt) Ltd, a Melco subsidiary, for a 20-year term effective 1 April 2024) is now under GRA oversight. There are six approved land-based casino licences. Officials report 60–70% of Sri Lankan casino users now play online.
Tax: the Betting and Gambling Levy rose from 15% to 18% of gross collections (effective 1 October 2025); the casino entry fee for Sri Lankan citizens doubled from USD 50 to USD 100 (2025 budget). The sector was valued at USD 293.93 million in 2020, projected to reach USD 410.04 million by 2026.
Last verified: May 2026. Reference rate: LKR 327 = USD 1.
Sri Lanka's gambling regime is freshly unified under the GRA (1 December 2025), explicitly capturing online and offshore operators. Crypto remains unregulated but a Concept Paper (12 February 2026) signals 2026 legislation.
Is there a crypto licence in Sri Lanka?
Not yet. No crypto law is in force. A Concept Paper for regulating virtual assets was presented on 12 February 2026; new laws are expected during 2026. The FIU is running a mandatory VASP survey.
The current legal position:
- No crypto law in force; cryptocurrency is not legal tender and not recognised as an asset class
- Investing in crypto is not explicitly prohibited (absence of specific legislation), but use for transactions is restricted under foreign-exchange regulations
- Banks prohibited from processing crypto transactions (2021)
- CBSL advisories: 2018 Public Awareness on Virtual Currencies; 2021; January 2024 "Protecting the Public from Crypto Investment Scams"
- These advisories are cautionary and non-binding as a licensing regime
Framework in development:
- July 2025: CBSL-led task force announced (with FIU, Finance Ministry, Digital Economy Ministry) to gather VASP transaction data, partly driven by Sri Lanka's upcoming FATF AML/CFT evaluation
- Late 2025: FIU launched a mandatory survey of all VASPs — first step toward formal sector identification
- 12 February 2026: Deputy Minister of Digital Economy Eranga Weeraratne presented a Concept Paper for regulating virtual assets to the National Coordinating Committee on AML/CFT
- The framework will: classify virtual assets, regulate service providers, establish information requirements (travel rule), align with international AML/CFT standards
- New laws expected during 2026
- Distinct from the Cyber Security Bill (security-focused, separate initiative)
- Proposed amendments to the Financial Transactions Reporting Act would require VASPs to register with the FIU for AML supervision
Operational reality:
- No licensing regime, no fee schedule, no capital thresholds yet
- VASPs should expect to participate in the FIU survey/registration process
- The sector is described by the Deputy Minister as currently lacking a legal structure, with associated fraud and scam risk
- There is no enforceable crypto tax regime yet; Budget 2026 was flagged as an opportunity to address the gap
Is there a gambling licence in Sri Lanka?
Yes. The Gambling Regulatory Authority Act, No. 17 of 2025 is in force from 1 December 2025. The Gambling Regulatory Authority (GRA) is the single, unified regulator for all gambling — land-based, online, offshore, and ship-based.
The legal foundation:
- Gambling Regulatory Authority Act, No. 17 of 2025 — certified by the Speaker 3 September 2025; gazetted 16 November 2025; in force 1 December 2025
- Repeals: Betting on Horse-Racing Ordinance (Chapter 44), Gaming Ordinance (Chapter 46), Casino Business (Regulation) Act, No. 17 of 2010
- Establishes the Gambling Regulatory Authority (GRA) as a body corporate
- "Gambling" broadly defined: betting, gaming, online gaming, casino, cruise-ship casinos, junket operations, digital gambling, and an enumerated list of casino games; the Minister of Finance may specify additional games by Gazette Order under section 19
- Excludes: lotteries conducted by the Development Lotteries Board and the National Lotteries Board; "social gambling" (non-remote, home-based, family/personal, non-commercial)
- Unified licensing: all operators — casinos, betting houses, online platforms, junket operators, gambling software providers — must obtain a GRA licence
- Ship-based gambling permitted in Sri Lankan territorial waters under defined conditions
- AML/CFT, terrorist-financing, and foreign-exchange compliance mandatory; operators rated on compliance history
- Online gambling licensing introduces controls for underage access, data privacy, and certified fair-play algorithms
- Formal institutional establishment of the GRA targeted for completion by 30 June 2026
Tax and fee changes:
- Betting and Gambling Levy: raised from 15% to 18% of gross collections (effective 1 October 2025)
- Casino entry fee for Sri Lankan citizens: doubled from USD 50 to USD 100 (2025 budget)
- Existing operators (Bally's, Bellagio, Casino Marina, Stardust) transitioning from provisional registrations (held since 2013) to GRA oversight
- Six approved land-based casino licences; 60–70% of casino users now play online
Casino Licence (GRA)
Best for integrated-resort and land-based casino operators in Colombo (including Port City).
What it is: Licence under the Gambling Regulatory Authority Act, No. 17 of 2025 for casino operations.
Who it suits: Integrated-resort developers and land-based casino operators in Colombo and the Port City of Colombo (e.g., City of Dreams-style developments).
Covers: Casino table games and the enumerated games of chance under the Act, at the licensed venue, subject to GRA conduct, AML/CFT, and social-responsibility codes.
Operational requirement: GRA licence. AML/CFT, counter-terrorist-financing, and foreign-exchange compliance; compliance-history rating. Casino entry fee for Sri Lankan citizens USD 100. Transition from provisional registration (for legacy operators). Capital and licence-fee thresholds per GRA implementing rules (being established by 30 June 2026).
Headline figures
- Betting and Gambling Levy: 18% of gross collections (from 1 October 2025)
- Citizen entry fee: USD 100 (doubled from USD 50)
- Approved land-based casino licences: 6
- Legacy operators transitioning: Bally's, Bellagio, Casino Marina, Stardust
- GRA institutional establishment target: 30 June 2026
Digital Gambling Licence (GRA)
Best for online, interactive, and mobile gambling operators and gambling software providers.
What it is: Licence newly introduced under the 2025 Act for digital gambling and gambling software, designed to eliminate the offshore grey area.
Who it suits: Online casino and sportsbook operators (local and offshore targeting Sri Lankan players), interactive/mobile gambling operators, and gambling software/platform providers.
Covers: Internet gambling, interactive gaming, mobile gambling, and gambling software provision, subject to certified fair-play algorithms, underage-access controls, and data-privacy requirements.
Operational requirement: GRA licence. Certified algorithms and technical standards approved by the GRA. AML/CFT, counter-terrorist-financing, and foreign-exchange compliance. Underage-access and data-privacy controls. Compliance-history rating. Tax obligations aligned with the Betting and Gambling Levy.
Headline figures
- New licence category: introduced under the 2025 Act
- Online share of casino users: 60–70%
- Levy: 18% of gross collections
- Offshore operators: now required to be GRA-licensed (grey area eliminated)
Junket Operator / Ship-Based / Software Provider Licences (GRA)
Best for junket organisers, cruise-ship casino operators, and gambling-technology suppliers.
What it is: Specific GRA licences for junket operators, ship-based gambling, and gambling software providers under the 2025 Act.
Who it suits: Junket operators (arranging transportation/accommodation/entertainment of gamblers), cruise-ship casino operators in territorial waters, and gambling software/platform suppliers.
Covers: Junket operations (with mandatory record-keeping of patrons and financial dealings); ship-based gambling under defined conditions; gambling software/platform provision.
Operational requirement: Specific GRA licence per category. Junket operators must maintain accurate, complete records of all transactions and patron information; any licensee engaging a junket operator must ensure patron compliance with entry/participation requirements. AML/CFT and foreign-exchange compliance.
Headline figures
- Junket operator licence: mandatory and specific
- Ship-based gambling: permitted under defined conditions in territorial waters
- Software providers: must be GRA-licensed
Costs and timelines at a glance
- Crypto law: none in force; Concept Paper presented 12 February 2026; new laws expected 2026
- Crypto regulator (emerging): CBSL + FIU + Ministry of Digital Economy
- Crypto legal tender: no; not recognised as an asset class
- Crypto transactions: restricted under foreign-exchange regulations
- FIU VASP survey: mandatory, underway since late 2025
- Gambling Act: Gambling Regulatory Authority Act, No. 17 of 2025; in force 1 December 2025
- Gambling regulator: Gambling Regulatory Authority (GRA)
- Repealed laws: Betting on Horse-Racing Ordinance, Gaming Ordinance, Casino Business (Regulation) Act No. 17 of 2010
- Betting and Gambling Levy: 18% of gross collections (from 1 October 2025; up from 15%)
- Citizen casino entry fee: USD 100 (doubled from USD 50)
- Approved land-based casino licences: 6
- GRA institutional establishment target: 30 June 2026
- Online share of casino users: 60–70%
- Sector value: USD 293.93m (2020) → projected USD 410.04m (2026)
- Crypto users: 1m+ (2025), projected 1.2m (2026)
Who Sri Lanka suits and who it does not
Suitable for
- Integrated-resort developers and land-based casino operators in Colombo and the Port City of Colombo willing to operate under the unified GRA regime
- Online, interactive, and mobile gambling operators willing to obtain the new GRA Digital Gambling Licence (including offshore operators previously in the grey area)
- Gambling software and platform providers willing to be GRA-licensed
- Junket operators and cruise-ship casino operators willing to meet GRA record-keeping and compliance standards
- Operators with strong AML/CFT and foreign-exchange compliance ahead of Sri Lanka's FATF evaluation
- Crypto/VASP operators willing to participate in the FIU survey and prepare for the 2026 framework as early movers
- Tourism-linked gaming investors aligned with Sri Lanka's "India's Macau" positioning
Not suitable for
- Crypto exchanges, custodians, and broker-dealers expecting immediate licensing — no crypto law is in force; only a Concept Paper exists
- Operators expecting crypto to be recognised as legal tender or an asset class — neither applies
- Crypto businesses relying on bank rails for crypto transactions — banks are barred from processing crypto, and FX regulations restrict crypto transactions
- Gambling operators expecting to continue under provisional registrations — the GRA Act repeals the legacy ordinances and requires transition
- Offshore online operators expecting to continue serving Sri Lankan players without a GRA licence — the grey area has been closed
- Operators unwilling to absorb the 18% Betting and Gambling Levy
- Junket operators unwilling to maintain full patron and financial records
- Operators concerned about regulator independence — commentators (Advocata Institute, research consultants) have raised concerns about GRA independence given Minister of Finance powers
- Crypto operators needing a defined tax regime — none is enacted yet (flagged for Budget 2026)
- Gambling operators expecting low penalties — though some experts note penalties may be below international norms, enforcement is consolidating under the GRA