The Hon. Chithral Fernando, Attorney-at-Law

¶ 01 Hon. Deputy Chairperson of Committees, thank you for the opportunity to speak on the Regulations under the Public Debt Management Act, the Regulations under the Foreign Exchange Act, and the Gambling Regulatory Authority Bill.

¶ 02 Following Hon. Gamini Rathnayake’s speech, let me note: we all now broadly accept that casinos and gambling can attract foreign exchange, tourism and investment, even if some personally object on cultural or religious grounds. Recently, Melco Resorts and Entertainment, a global giant, joined with John Keells Holdings to launch City of Dreams Sri Lanka—a landmark investment welcomed by many.

¶ 03 Therefore, regulation is necessary. But Melco’s 2024 Annual Report itself notes legal and regulatory uncertainty in Sri Lanka: while they obtained a licence, there is material uncertainty due to potential changes in the legal and regulatory environment. This underscores the need for a robust, stable legal framework.

¶ 04 The Bill describes the Authority as an independent regulator “with a broad curriculum to promote tourism and economic growth.” However, reading the Bill suggests strong ministerial control rather than true independence. Examples: - The Secretary to the Ministry of Finance sits on the Board ex officio. Three members are appointed by the Minister, and one of them is appointed as Chair by the Minister [s.7(3)(b)]. - The Minister may remove the Chair for stated reasons [s.8(3)]. - The Minister may, by Gazette, set minimum capital requirements for applicants [s.16(1)(b)]. - The Minister defines what constitutes digital gambling. - Funding is through Parliamentary appropriations, inviting political leverage [s.36(1)(a)]. - The Director‑General of the Authority is appointed by the Minister [s.39(1)(b)]. - The Minister may determine remuneration of the DG and staff [s.40(2)]. - The Minister issues directives and makes regulations; a long list under s.76(2).

¶ 05 A regulator must have government oversight, yes, but not pervasive political control. This level of ministerial dominance raises investor concerns—investors themselves have flagged uncertainty. Unless the framework convincingly assures independence and clarity, we risk deterring the very investments we seek.

¶ 06 I also recall Hansard from 25 April 2014, when Hon. Anura Kumara Dissanayake, then in Opposition, criticized international casino projects, dramatizing casino floors and tables and attacking supposed oligarchs. Today, the same leadership presides over openings of the largest such projects. Words then versus actions now—investors see this inconsistency and it breeds uncertainty.

¶ 07 We support regulation and development, but centralizing power in one Minister undercuts credibility and risks major harm. With that, I conclude.