Think tank calls for redraft of Sri Lankan gambling bill
The Advocata Institute says the proposed Gambling Regulatory Authority Bill undermines regulator independence.
Sri Lanka.- A think tank has called for a rethink on Sri Lanka’s draft Gambling Regulatory Authority Bill. The Advocata Institute, based in Colombo, has called for the government to withdraw and fully redraft the proposed legislation, claiming that its current form grants excessive power to the Ministry of Finance and fails to ensure the independence and effectiveness of the regulator.
The bill was published in May ahead of the much-anticipated launch of the City of Dreams Colombo casino, which is expected in early August. While Advocata agrees that a regulatory framework is urgently needed, it warns that rushing through flawed legislation could damage the industry’s integrity, reduce investor confidence and allow corruption.
The bill gives the Minister of Finance powers to appoint the director general and board members an issue binding directives, which Advocata says is inconsistent with global norms. It recommends modelling the structure after Sri Lanka’s Securities and Exchange Commission, where appointments require approval by the Constitutional Council and operational autonomy is protected by law.
Sudaraka Ariyaratne, research consultant at Advocata said: “Without independence, we risk creating a framework that lacks credibility, is vulnerable to political interference, and cannot deliver on its mandate,. In its current form, the bill doesn’t create a regulator. It creates a proxy.”
Advocata also criticised the bill’s lack of oversight on junket operations and financial transparency, the absence of revenue-tracing mechanisms, the size of penalties for violations, and the bill’s failure to empower the regulator to cap the number of operators or gaming positions. It also noted the exclusion of the state-run lottery sector from oversight.
Advocata has urged the government to consult with industry stakeholders, civil society and the general public. “The Gambling Regulatory Authority Bill, while timely and necessary, must be reworked to ensure it establishes a truly independent, empowered, and credible institution,” Advocata concluded.
