The Sri Lankan government has introduced a series of fiscal measures in its 2025 budget, including higher levies on casinos. The move comes as the country seeks to boost revenue and stabilize its economy following years of financial difficulties, including an international debt default in 2022.
One of the key changes announced is an increase in the levy on gross casino collections, rising from 15% to 18%. Additionally, the entrance fee for casino patrons will double from $50 to $100. The government aims to generate higher tax revenue from the country’s growing gaming industry, which has attracted investment in recent years.
City of Dreams Sri Lanka
Among the largest projects currently underway is a $1.2 billion integrated resort in Colombo, a joint venture between Macau-based Melco Resorts & Entertainment and Sri Lanka’s John Keells Holdings. Named City of Dreams Sri Lanka, the resort is expected to fully open in the third quarter of 2025.
Beyond the gaming sector, the budget introduces further tax increases across multiple industries. The corporate tax rate for tobacco and alcohol companies is set to rise, with rates potentially reaching 45%. The government has also announced a hike in stamp duty on lease contracts, doubling the rate from 1% to 2% starting March 1, 2025. This increase will apply to all lease agreements, except for hire purchase contracts.
Previously in 2023, Sri Lanka raised casino licensing fees and took steps to establish a dedicated regulatory authority to oversee tax collection, address criminal activity, and mitigate social concerns related to gambling.
Sri Lanka currently has six legal casinos: Bally’s, Bellagio, Casino Marina, Stardust, Continental Club, and The Ritz Club. Two additional casinos are under development, including the aforementioned City of Dreams Sri Lanka, and Majestic Pride Casino, a joint venture between Golden Island Hospitality Ltd and India-based Majestic Group Hotels and Casinos, which is set to open at the Colombo Lotus Tower.
Original article: https://www.yogonet.com/international/news/2025/02/19/95673-sri-lanka-increases-casino-fees-and-taxes-in-2025-budget-in-a-bid-to-boost-state-revenue
