Casino entrance levy doubled; gross collection levy raised to 18% from January 2026

Colombo, December 31 (Daily Mirror) - 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 today (December 31), the Casino Entrance Levy (CEL) has been increased from USD 50 to USD 100 per entrant. Under the revised provision, 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.

In addition, the Gross Collection Levy applicable to betting and gaming businesses has been raised from 15 per cent to 18 per cent. The revised rate will apply to gross collections exceeding Rs. 1 million per month from businesses such as bookmakers and gaming operators.

The changes follow amendments made to the Betting and Gaming Levy Act No. 40 of 1988 through the Betting and Gaming Levy (Amendment) Act No. 25 of 2025.

The IRD has instructed all casino operators and businesses engaged in betting and gaming activities to comply with the new levy structure from the effective date.

Further clarifications can be obtained from the relevant officials at the Inland Revenue Department, the notice said.