As Sri Lanka prepares for the high-profile launch of Melco's City of Dreams integrated resort on 2nd August, the government's attempt to rush through a new
As Sri Lanka prepares for the high-profile launch of Melco’s City of Dreams integrated resort on 2nd August, the government’s attempt to rush through a new regulatory framework is drawing sharp condemnation from policy experts. The proposed Gambling Regulatory Authority Bill, intended to provide oversight for the nascent market, is being criticised as a fundamentally flawed piece of legislation that fails to establish a credible, independent regulator.
The most severe criticism, led by Colombo-based think tank the Advocata Institute, centres on the excessive powers vested in the Minister of Finance. Under the draft bill, the Minister would have the sole authority to appoint the board and Director General, issue binding directives, and unilaterally create regulations.
“The independence of a regulatory body is non-negotiable,” said Sudaraka Ariyaratne, a Research Consultant at Advocata. “In its current form, the Bill does not create a regulator. It creates a proxy.” This concentration of political power, critics argue, undermines the very purpose of an independent authority and creates a framework vulnerable to corruption and political interference, a major red flag for international operators who prioritise regulatory stability.
When compared to established regulatory models like Singapore’s, the shortcomings of the Sri Lankan bill become stark. Where Singapore has a robust, multi-layered legal framework built on stringent controls and social safeguards, analyses describe the Sri Lankan bill as a “skeletal framework” primarily weighted towards revenue collection rather than integrity and social protection.
Key areas where the bill fails to meet international best practices include:
The bill also has notable structural omissions, such as excluding the state-run lottery boards from its oversight and failing to mandate representation from the Sri Lanka Tourism Development Authority on its board.
Experts at Advocata warn that while Sri Lanka is hastily assembling a flawed framework, regional competitors such as the UAE and Thailand are moving purposefully to establish their own gaming markets. By failing to create a credible and independent regulatory environment from the outset, Sri Lanka risks losing valuable foreign investment and tourism revenue to these emerging rivals.
The consensus among policy experts is that while the creation of a regulatory authority is a necessary step, the current bill should be withdrawn and reworked following public consultation. As it stands, the legislation threatens to undermine the long-term integrity of the market it seeks to govern.
