Sri Lanka: committee questions delay in forming gambling regulator
The Sri Lanka Parliament’s Committee on Public Finance expects legislation to be finalised by March 31.
Sri Lanka.- The Sri Lanka Parliament’s Committee on Public Finance (COPF) has expressed concern over the failure to meet the government’s commitment to establish a gaming regulator by December 31, 2023. COPF members stressed the urgency of enacting relevant legislation.
According to a report by EconomyNext, they pointed out that the absence of adequate regulations has resulted in substantial financial losses for the government.
The COPF has also summoned the director general of fiscal policy to provide information regarding both physical and online casinos, including tax revenues generated. It called for a plan to recover outstanding taxes owed by gaming establishments. It has granted a two-week extension for the submission of requested information, with expectations for the legislation to be completed by March 31.
A ministry of finance representative acknowledged the need for additional expertise to develop a robust revenue model akin to that of Singapore.
Casinos are estimated to owe US$7.4m in taxes due to a lack of regulatory oversight. The Cabinet of Ministers gave its approval to draft a bill for the creation of a Gambling Regulatory Authority last June.
The plan to regulate gaming would allow operators to obtain licences for up to 20 years, with five-year renewable licences costing US$1.36m. In January, the government reported it was assessing 10 applications for casinos. State minister for Finance, Ranjith Siyambalapitiya, confirmed that the applications were at various stages of evaluation.
