Sri Lanka to Double Casino Entry Fees, Raise Taxes in 2025 Budget

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Sri Lanka’s government has announced significant changes for the gaming industry under its 2025 budget plan, including higher casino entry fees and increased tax levies.

Higher Casino Levies to Boost Tax Revenue and Fiscal Discipline

According to GGR Asia, the new budget, presented by President Anura Kumara Dissanayake, proposes doubling the entrance fee for locals at licensed casinos from US$50 to US$100 per person. The gross collection levy on gaming establishments will also increase from 15% to 18%.

President Dissanayake emphasized the importance of fiscal discipline while presenting the budget. “While we recognise the role played by the IMF … in stabilizing the economy, we are also of the view that in order to design our economic agenda, achieving economic sovereignty is necessary,” he said.

The 2025 budget aligns with the International Monetary Fund’s (IMF) recommendations, aiming to boost Sri Lanka‘s tax revenue, which accounted for only 7.3% of GDP in 2022. The IMF previously provided Sri Lanka with a US$2.9 billion bailout after the country defaulted on its US$46 billion foreign debt in 2022.

In addition to casino levies, the budget introduces higher taxes across various sectors. This includes increased corporate taxes on tobacco and alcohol, an expansion of stamp duty, and a rise in capital gains tax for individuals from 10% to 15%.

Sri Lanka is currently home to six legal casinos: Bally’s, Bellagio, Casino Marina, Stardust, Continental Club, and The Ritz Club. Two more casinos are under development. City of Dreams Sri Lanka, a US$1-billion project by Melco Resorts & Entertainment in partnership with John Keells Holdings Plc, is set to open its casino in the third quarter of 2025. Majestic Pride Casino, a collaboration between Golden Island Hospitality Ltd and India-based Majestic Group Hotels and Casinos, will launch at Colombo Lotus Tower.

The government also plans to lift the ban on vehicle imports, which was imposed in 2020. President Dissanayake stated, “For the year 2025, the bulk of revenue gains is expected to be delivered by the liberalisation of motor vehicle imports.”

The budget reflects the government’s broader strategy to strengthen the economy while ensuring that the gaming industry contributes significantly to state revenue. The establishment of a formal gaming regulator further highlights the country’s efforts to streamline casino operations and address potential societal impacts.

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