• Sri Lanka’s newly approved bill to create a Gambling Regularisation Authority (GRA) is deeply flawed and risks creating an ineffective regulator vulnerable to corruption, according to a leading local researcher.
• Sudaraka Ariyaratne of the Advocata Institute think tank warns the bill grants excessive and sweeping powers to the Minister of Finance, completely undermining the regulator’s independence.
• The critique comes just weeks after Melco Resorts opened its City of Dreams Sri Lanka casino, the country’s first major integrated resort, on 2 August.
• The bill is also criticised for largely ignoring the growing online gambling sector while focusing almost exclusively on land-based casinos.
• Ariyaratne argues that without a major overhaul to ensure true autonomy, Sri Lanka risks mirroring Cambodia’s poorly regulated and struggling gaming industry.

Just as Sri Lanka takes its first major step into the world of integrated casino resorts, lawmakers have approved a bill to create a new Gambling Regularisation Authority (GRA). However, the legislation is being slammed by local policy experts as a “major gamble” that is fundamentally flawed and unfit for purpose.

In a scathing commentary, Sudaraka Ariyaratne, a research consultant at the Colombo-based think tank Advocata Institute, warned that while the move to regulate is welcome in principle, the bill’s “many deficiencies make it unlikely to position Sri Lanka as a competitive regional player.” He argued that the legislation, in its current form, is a recipe for failure.

A Crisis of Independence

The central and most severe criticism of the bill is its complete lack of regulatory autonomy. Ariyaratne points out that the legislation grants sweeping and unchecked powers to a single politician: the Minister of Finance. The Minister will have the authority to appoint board members, issue binding directives to the GRA, make regulations unilaterally, and control the body’s funding.

This structure, he argues, makes the regulator a puppet of the ministry rather than an independent oversight body. “It won’t even give a perception of integrity if the Minister of Finance can basically do whatever he or she wants,” Ariyaratne warned, suggesting the framework is vulnerable to political interference and corruption.

Major Gaps: Online Gambling and Lotteries Ignored

The bill’s scope is another major point of concern. Ariyaratne notes that the legislation is almost exclusively focused on land-based casinos, while “largely ignoring the growing [iGaming] betting sector” and completely exempting state-run lotteries. This failure to address the popular and rapidly expanding online market is seen as a critical and seemingly “intentional” omission that leaves a huge segment of the industry without any proper oversight.

A Warning for International Investors

This legislative misstep comes at a critical time for Sri Lanka, just after the 2 August opening of the casino at Melco Resorts’ $1.2 billion City of Dreams integrated resort. While the entry of a global player like Melco signals the market’s potential, the company itself has previously expressed concerns about the country’s uncertain regulatory landscape.

Ariyaratne argues that this flawed bill will do little to allay those fears and is unlikely to attract new international investment. Instead, he warns, it risks creating an ineffective regulator that mirrors “Cambodia’s struggling, poorly regulated gaming industry” - a powerful warning for any operator considering the market. He is calling on lawmakers to “get it right now” by making major amendments to ensure the GRA’s independence before the law is entrenched.