Hon. (Dr.) (Ms.) Kaushalya Ariyarathne

¶ 01 Hon. Deputy Speaker, first, in response to an earlier Member who said his religion prohibits gambling but still had to raise his hand in Committee on Public Finance: your governments failed to regulate gambling. We are taking the first step. You never expected an NPP government to come to power and regulate this; now you oppose it here. That is the karmic consequence you spoke of.

¶ 02 On shipboard casinos: even if some are unaware, gambling on ships around Sri Lanka already happens, as do onshore casinos—without regulation. This Bill does not newly bring ships; it brings regulation.

¶ 03 Sri Lanka has had gambling in various forms since colonial times: the 1844 Lotteries Ordinance; 1889 Gaming Ordinance; 1935 Betting on Horse-Racing, and the Casino Businesses (Regulation) Act, No. 17 of 2010. Casinos are just one type of gambling, which expanded after the 1977 open economy that fractured our social, political, and cultural fabric, dismantled productive industries and SMEs, curtailed rights, weakened state machinery, and led to the 2022 bankruptcy. We assumed office in 2024 to fix this.

¶ 04 Today, perhaps six main casinos operate; they have not been paying due taxes. Money is being remitted out; many online casinos operate. These are not new—we are finally regulating them. Discussions on regulation started around 2010–2011; a draft bill came in 2013 but was not passed; renewed in 2022. The Committee on Public Finance, on 24 November 2022, directed establishing a specific gambling regulatory authority and urged a model similar to Singapore’s with timelines and best practices.

¶ 05 If Members had concerns, they should have raised them in the Committee; many did not. The Committee extensively discussed gaps and progressive elements. This is a long-standing social necessity, not a sudden idea. In 2022, total state revenue from lotteries, etc., was only Rs. 12.88 billion, far below potential due to poor licensing and measurement mechanisms. The Sunday Times (14 Jan 2024) reported an MoF estimate of USD 7.4 million in dues from casinos—source not cited, but it indicates loss.

¶ 06 Sri Lanka will be among the few South Asian countries to regulate comprehensively (Nepal has some regulation). Our Bill mirrors key elements of Singapore’s. Weak regulation has cost us revenue. The Bill’s objectives (Clause 3) include: - Regulating and supervising gambling activities - Ensuring revenue collection - Transparency and good governance in gambling operations - Promoting responsible gambling to minimize harm - Preventing illegal activities - Minimizing social harm - Preventing use of gambling for money laundering

¶ 07 This is not to promote casinos but to bring an unregulated market under control and collect due revenue.

¶ 08 On concerns about the Minister’s role in appointments: under our legal framework, Ministers appoint boards of authorities; the State must intervene because casino operators prefer minimal state oversight. This Bill mandates full recording of revenues and bets.

¶ 09 On online gambling: it is a growing menace. Clause 76 empowers the Authority to make evolving regulations to address new online formats. Clause 29 links enforcement to AML/CFT, TFS, reporting, Inland Revenue, and Foreign Exchange laws, and empowers suspension of licences for violations. This Authority works alongside other laws, enabling cross-regulatory action against money laundering. With these powers, we can monitor and collect proper revenues, and curb illegal flows.

¶ 10 Please support this essential legislation.