The Inland Revenue Department (IRD) has announced revisions to taxes applicable to casino operators and betting and gaming businesses, with effect from January 1, 2026.
According to an official notice issued on December 31, the Casino Entrance Levy (CEL) has been increased from USD 50 to USD 100 per entrant. Under the revised provisions, every person carrying on a gaming business in Sri Lanka is required to collect a levy of USD 100, or its equivalent in any other convertible foreign currency, or in Sri Lankan rupees from Sri Lankan citizens, for each individual entering a gaming premises.
The IRD also announced an increase in the Gross Collection Levy applicable to betting and gaming businesses, raising it from 15 per cent to 18 per cent. The revised rate will apply to monthly gross collections exceeding Rs. 1 million from businesses such as bookmakers and gaming operators.
The tax revisions follow amendments to the Betting and Gaming Levy Act No. 40 of 1988, introduced through the Betting and Gaming Levy (Amendment) Act No. 25 of 2025.
The IRD has instructed all casino operators and entities engaged in betting and gaming activities to comply with the new levy structure from the effective date. Further clarifications can be obtained from relevant officials at the Inland Revenue Department, the notice added.
