Following amendments to the Betting & Gaming Levy Act of 1988, on January 1st, Sri Lanka’s Inland Revenue Department (IRD) imposed new tax measures impacting the betting and gaming industry, including an increased casino entrance levy and a higher gross collection levy.
The Casino Entrance Levy (CEL) doubles from $50 to $100 for Sri Lankan citizens entering casinos. Operators must collect this levy in either US dollars, another convertible foreign currency or Sri Lankan rupees at the prevailing exchange rate.
Additionally, the gross collection levy for betting and gaming operators increases from 15% to 18%. This revised rate applies to all operators whose monthly gross collections exceed LKR1m (US$3,228), and casinos, bookmakers and other gaming operators operating under Sri Lanka’s regulatory framework.
The legislative basis for these measures was established when the Sri Lankan parliament passed the Betting & Gaming Levy (Amendment) Bill on December 5th, 2025. This Bill was certified by Speaker Dr. Jagath Wickramaratne on December 17th, officially bringing it into force as an Act of Parliament.
Betting and gaming businesses must also update their accounting and reporting processes to reflect the new gross collection levy rate. Although the IRD’s announcement does not specify penalties for non-compliance, adhering to these tax obligations is necessary for operating legally within Sri Lanka’s gaming sector.
These changes are part of broader fiscal measures approved last year, aligning with amendments to the Social Security Contribution Levy and Strategic Development Projects in Sri Lanka.
Source: SiGMA World
