Sri Lanka Increases Casino and Gaming Levies from January 2026
January 5, 2026
Sri Lanka Increases Casino and Gaming Levies from January 2026
Sri Lanka has announced higher taxes for the betting and gaming sector, effective 1 January 2026, following amendments to the Betting and Gaming Levy Act.
Casino Entrance Levy Changes
The Casino Entrance Levy (CEL) for Sri Lankan citizens has doubled, increasing from USD 50 to USD 100 per entry. Casino operators are required to collect this levy directly from local patrons, either in foreign currency or in Sri Lankan rupees at the prevailing exchange rate.
Gross Collection Levy Increase
In addition, the Gross Collection Levy on betting and gaming businesses has risen from 15% to 18%. This applies to operators with monthly gross collections exceeding LKR 1 million and affects casinos, bookmakers, and other licensed gaming operators across the country.
Implementation and Compliance
These changes were approved by Parliament in December 2025 and are now legally in force. The Inland Revenue Department has reminded all operators to fully comply with the updated levy structure from the effective date.
Broader Fiscal Reforms
The new measures are part of broader fiscal reforms aimed at strengthening government revenue from regulated industries, including betting, gaming, and casino operations. Businesses operating in this sector should review their pricing, accounting, and compliance processes to ensure alignment with the new requirements.