Melco forecasts strong revenue for Sri Lanka project
When fully operational, Melco's recently announced City of Dreams Sri Lanka project is expected to produce gross gaming revenue of $200-250 million annually.Melco's EVP...
Sri Lanka implements higher taxes and fees for casinos
Sri Lanka’s 2025 budget introduces significant tax changes for the gaming industry, with an 18% tax on casinos’ gross collections, and the entrance fee for patrons doubled from $50 to $100.
This move comes as Sri Lanka’s casino sector continues to expand, especially in Colombo, where large-scale resorts have opened in recent years. One of the biggest projects is City of Dreams Sri Lanka, a $1.2 billion joint investment by Macau’s Melco Resorts & Entertainment and John Keells Holdings. Set to open in the third quarter of 2025, it will be the country’s largest private investment till now.
The government sees the gaming industry as a key driver of tourism and economic growth but is also taking steps to regulate and tax it more effectively.
Lease contracts will be subject to a higher stamp duty, increasing from 1 percent to 2 percent starting March 1, 2025. Additionally, a new digital services tax will be introduced under the VAT system, requiring businesses to use point-of-sale machines.
The investment assets tax, on the other hand, will raise the capital gains tax from 10 percent to 15 percent, with the exception of residential houses and listed shares. These reforms reflect the general direction of the government to raise more revenue and restrain economic growth in the coming years.
FAQs
Is gambling legal in Sri Lanka?
Gambling in Sri Lanka is legal.
What is the legal gambling age in Sri Lanka?
The legal gambling age in Sri Lanka is 18.
Finland moves to end gambling monopoly by 2027
The Finnish government has introduced a bill to end Veikkaus’ monopoly on iGaming by late 2026, opening the way for international companies to operate under a new licensing...
