Sri Lanka Establishes Casino Regulator to Boost Tourism, Economy

Sri Lanka is strategically focusing on casinos to revive its tourism sector and boost economic growth following its financial collapse in 2022-2023. President Anura Kumara Dissanayake aims to increase tourism's GDP contribution from 4% to 10% by attracting affluent tourists mainly from India and China, with a target of 3 million arrivals and $5 billion in tourism revenue by 2025. Central to this strategy is the $1.2 billion City of Dreams integrated resort in Colombo, South Asia’s first of its kind, developed through a partnership between John Keells Holdings and Melco Resorts & Entertainment. To support growth and build investor confidence, Sri Lanka’s parliament passed the Gambling Regulatory Authority Bill, establishing an independent regulator to oversee casino licensing, enforce anti-money laundering measures, and ensure responsible gambling. Officials emphasize that transparent and structured regulation is essential for the industry’s sustainable expansion and public trust. The government views casinos as a segment of its broader push for high-end, quality tourism to drive long-term economic recovery and employment.