Sunday Feb 22, 2026
Sunday Feb 22, 2026
Monday, 5 January 2026 05:26 - - {{hitsCtrl.values.hits}}
The Inland Revenue Department (IRD) has announced that a series of tax increases on Sri Lanka’s betting and gaming sector came into effect from 1 January, following amendments to the Betting and Gaming Levy Act, No. 40 of 1988, under the Betting and Gaming Levy (Amendment) Act, No. 25 of 2025.
Under the revised framework, the Casino Entrance Levy (CEL) was doubled from $ 50 to $ 100 per entrant. “Every person who carries on the business of gaming in Sri Lanka shall collect a CEL of $ 100 or its equivalent in any other convertible foreign currency or in Sri Lankan currency from a Sri Lankan citizen who enters into such a place of business of gaming, with effect from 1 January 2026,” the notice reads.
In addition to the higher entry levy, the Government has increased the Gross Collection Levy applicable to betting and gaming businesses. The levy rate has been raised from 15% to 18% on gross collections, marking a significant increase in the tax on the sector. The revised rate will apply to bookmakers and gaming operators whose gross collections exceed Rs. 1 million per month.
The IRD said the changes are mandatory for all operators engaged in casino operations and other betting and gaming activities, who are required to ensure full compliance with the new levy structure from January 2026.
The tax increases come as the Government continues to strengthen revenue mobilisation measures, particularly in sectors seen as having strong earning potential. The betting and gaming industry, which includes casinos and other regulated gaming activities, has been identified as a key area for enhanced fiscal contribution amid broader efforts to consolidate public finances and widen the tax base.
