Sri Lanka hopes casinos can help boost tourism revenue to 10% of GDP

The government expects a revenue boost from the regulation of casino gambling.

Sri Lanka.- The government of Sri Lanka is hoping that cainos will help it meet a target for tourism to contribute 10 per cent of GDP in the coming years. Tourism currently accounts for approximately 4 per cent of GDP, but the government expects this to more than double as it aims to increase tourist arrivals to 3 million this year, potentially lifting revenues to US$5bn from US$3.7bn in 2024.

President Anura Kumara Dissanayake, who will complete one year in office next month, has made high-end gaming a central focus to attract affluent visitors from India and China. The US$1.2bn City of Dreams Colombo opened this month, and a new regulatory framework has been approved to formalise and expand the gaming sector.

Deputy tourism minister Ruwan Ranasinghe said the short-term focus is on boosting arrivals quickly, but the long-term vision is for “quality, more sustainable, and high-end tourism, with casinos and gambling as part of that.”

India and China are expected to remain the biggest sources of visitors. Indians accounted for nearly a quarter of arrivals last year, while Chinese visitors represented 7 per cent. With casinos banned or limited to specific regions in both countries, Sri Lanka is aiming to capture a share of outbound demand, supported by visa-free entry for both nationalities.

The Gambling Regulatory Authority Bill raises taxes on gross gaming revenue from from 15 to 18 per cent, and a US$100 entry fee has been introduced for Sri Lankan residents. The government says these steps will balance growth with social responsibility.

City of Dreams is the largest private investment in Sri Lanka to date. Located on Colombo’s beachfront, it has 800 rooms, a luxury mall, and conference facilities. Melco Resorts Chairman Lawrence Ho described Sri Lanka as a “total greenfield market,” drawing parallels with how the company grew in Manila, Macau, and Cyprus.

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See also: City of Dreams Sri Lanka opens

The government expects a revenue boost from the regulation of casino gambling. Sri Lanka.- The government of Sri Lanka is hoping that cainos will help it meet a target for…