At 2026 Global Game Connect, Sri Lanka Promotes Its Expanding Domestic Industry

(AsiaGameHub) –   During the 2026 Global Game Connect (GGC) conference held in Sri Lanka, government officials reaffirmed their dedication to building a legal, fair, and sustainable gaming industry.

The conference was hosted earlier this month at City of Dreams Sri Lanka, South Asia’s first integrated resort. This $1.2 billion IR, which operates a casino run by Melco Resorts & Entertainment, first opened in 2025, marking the largest private-sector investment in Sri Lanka to date.

Deputy Minister of Industries and Entrepreneurship Development Chathuranga Abeysinghe told conference attendees, “Technology paired with creativity will drive this industry… From a government perspective, we will provide our full support to grow this sector both domestically and across the region.”

Sri Lanka benefits from its strategic location, being a four-hour flight from Southeast Asia and a two-hour flight from India. “We have significant potential for [gaming], particularly for fast-growing neighboring markets like India,” stated Deputy Transport Minister Susil Ranasinghe during GGC.

Stricter regulation: a prerequisite for gaming operators

Robust regulation is essential to attract global gaming operators such as Melco, a leading firm based in Macau. The 2025 Sri Lanka Gambling Regulatory Act mandates “transparency and good governance” to foster “public confidence in the integrity of the gambling industry”.

The act prohibits “irresponsible products and practices” and calls for programs “to minimize social harm associated with gambling”. It also includes measures to curb financial crimes like money laundering and prevent people under the age of 18 from gambling.

This legislation applies to both land-based and online gaming. Officials report that 60% to 70% of gamblers currently patronize unregulated offshore providers. Penalties for unlicensed iGaming operators include fines of up to Rs. 10 million ($107,000) or up to two years of imprisonment.

The independent Gambling Regulatory Authority, also established in 2025, was created to enforce this act. It is scheduled to be fully operational by the end of June.

Sri Lanka connects gaming and tourism

As Sri Lanka continues to recover from the 2022 economic crisis, officials are drawing a direct link between the gaming and tourism sectors. They have set a target of up to 3 million visitor arrivals this year, surpassing the 2025 record of 2.3 million. Their strategy includes positioning the island as a high-end tourism destination, including for gambling tourists. The tourism revenue target of $4.5 billion is based on an average daily per-person expenditure of $160, up from $140 in 2025.

With the gaming levy increased from 15% to 18% and higher casino entry fees for local visitors, gaming revenue is expected to generate an additional $250 million per year. However, for brick-and-mortar casinos, the majority of revenue will likely come from foreign tourists. According to one estimate, the local entry levy, which doubled last year from $50 to $100, equals 40% to 60% of the starting monthly salary for a Colombo-based office worker.

As such, Sri Lanka is casting a wide net to attract visitors. Tourism Development Authority Chairman Buddhika Hewawasam shared that the country views Saudi Arabia and the broader Middle East as potential feeder markets, alongside the United States.

On the sidelines of GGC, a representative from iGaming platform provider Diamante Tech noted that Sri Lanka’s stricter gaming regulations have boosted its appeal to global manufacturers and suppliers. “There is a growing sense that industry players are now looking closely at the Sri Lankan market. This is a really positive move… and a fantastic opportunity. The sector will only continue to grow.”