The Hon. Nishantha Jayaweera

¶ 01 Hon. Presiding Member, today we debate the regulation under section 22 of the Foreign Exchange Act, the regulations under the Public Debt Management Act, and the Gambling Regulatory Authority Bill.

¶ 02 With this Bill, a new Gambling Regulatory Authority will be established, while repealing the Horse‑Racing (Totalizator) Board Ordinance, the Gaming Ordinance, and the Casino Business (Regulation) Act, No. 17 of 2010. The Bill defines “gambling” and clarifies that the National Lotteries Board and Development Lotteries Board are excluded, as they are governed by special statutes, overseen by Parliament and the Auditor‑General, and their taxes are collected appropriately.

¶ 03 The Bill’s definitions encompass currently known forms and allow the Minister, under clause 19, to bring new forms within scope as they emerge, ensuring the Authority can regulate evolving activities.

¶ 04 Key objectives include: - Regulating and controlling gambling activities, - Ensuring revenue collection from gambling, - Ensuring transparency and good governance within the sector, - Promoting tourism, employment and economic development through regulated operations, - Building public confidence in the integrity of the industry, - Ensuring fairness and preventing illegal activity, - Minimizing harm and social costs, - Preventing gambling from becoming a source of crime or disorder, - Preventing use of gambling operations for money laundering, - Protecting children.

¶ 05 All gambling—including online and offshore/ship‑based near coastal waters—must register with the Authority. Unregistered operations face penalties (e.g., up to Rs. 10 million fine or not less than two years’ imprisonment). Online platforms must submit software to the Authority and obtain specific licences; failure will be an offence.

¶ 06 The Bill mandates proper record‑keeping: receipts, payments, cash transactions, suspicious transactions, large transactions, and electronic transfers—enabling accurate tax assessment and collection. Tax rules remain under the Inland Revenue Act and the Betting and Gaming levy laws; what was lacking was an effective regulatory net, which this Bill provides.

¶ 07 It also sets age protections: no gambling under 18; no employment in gambling venues under 21. The Authority’s Board will include the Treasury (Finance Secretary or nominee), Commissioner General of Inland Revenue (or nominee), IGP (or nominee), Head of the FIU (or nominee), and three experts in accounting, IT, economics or the field, appointed by the Minister. Licencing and supervision will be done by the Authority, not by unilateral ministerial discretion as under prior laws; many powers previously with the Minister shift to the independent Board.

¶ 08 Finally, on tax burden claims: after coming to power, this Government removed three taxes continued by previous administrations and provided relief. Our aim is fair revenue through proper regulation, not undue burden.