Sri Lanka Betting Gaming Excise

---
name: sri-lanka-betting-gaming-excise
description: "Sri Lanka betting & gaming levy, excise duty and customs import duties — rates and obligations for Y/A 2025/26 (with 2026 amendments)."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/sri-lanka-betting-gaming-excise"
  jurisdiction: "LK"
  tax_year: "2025"
  last_updated: "2026-07-13"
  reviewed_by: "Lal kumarasiri"
---

# Sri Lanka Betting, Gaming Levy & Excise

## 

- **Customs import duties** — Standard bands revised to 0%, 10%, 20%, and 30% under National Tariff Policy effective April 2026 (Budget 2026). Anti-dumping and countervailing duties may apply additionally. Para-tariffs (PAL, CESS on most goods) being phased out. Import duty exemptions available for BOI-approved projects and qualifying machinery.  _(Customs Ordinance (Cap. 235); Budget 2026; IRD/Customs Circular)_
- **Excise duty** — Levied on liquor, tobacco, fuel (petroleum products), motor vehicles, and certain luxury goods. Rates set by the Excise (Special Provisions) Act and annual gazette notifications. Excise duty on alcohol and tobacco increased periodically.  _(Excise Ordinance (Cap. 52); Excise (Special Provisions) Act No. 13 of 1989; Annual Gazette)_
- **Betting and gaming levy** — Levy on gross collections of betting and gaming operations. Corporate income tax rate of 40% applies (see CIT section). Betting and Gaming Levy Act applies additional levy to licensed operators.  _(Betting and Gaming Levy Act; IRA First Schedule)_
- **Stamp duty (transactions)** — Immovable property transfers: approximately 3% paid by buyer and 1.5% by seller at provincial level (may vary by province). Share transfers: stamp duty on instrument of transfer. Loan agreements and other instruments: specific rates.  _(Stamp Duty (Special Provisions) Act No. 12 of 2006; Provincial Council laws)_
- **Customs import duty** — Bands revised to 0%, 10%, 20%, 30% (National Tariff Policy effective April 2026). Para-tariffs (PAL, CESS on most goods) being phased out. BOI exemptions for qualifying capital goods. Anti-dumping duties may apply additionally.  _(Customs Ordinance (Cap. 235); Budget 2026; IRD/Customs Department)_
- **Stamp duty on property and instruments** — Levied on transfer of immovable property (provincial rates: approx. 3% buyer + 1.5% seller), share transfers, and other instruments.  _(Stamp Duty (Special Provisions) Act No. 12 of 2006; Provincial Council laws)_
- **Legislative basis** — Betting and Gaming Levy Act No. 40 of 1988, as amended most recently by the Betting and Gaming Levy (Amendment) Act No. 25 of 2025 (passed by Parliament 5 December 2025; certified by the Speaker 17 December 2025).  _(Betting and Gaming Levy Act No. 40 of 1988; Amendment Act No. 25 of 2025)_
- **Who is liable?** — Every person who carries on the business of a bookmaker OR business of gaming within Sri Lanka (whether lawfully or unlawfully) is chargeable to the levy. If the business is carried on in different places by the same person, a separate levy is payable for each separate place (each place treated as a separate business).  _(Betting and Gaming Levy Act No. 40 of 1988 s 2; IRD Betting and Gaming Levy page)_
- **Gross Collection Levy (GCL) – current rate (from 1 January 2026)** — 18% percent of gross collections (INCREASED from 15% by the Betting and Gaming Levy (Amendment) Act No. 25 of 2025, effective 1 January 2026.)  _(Betting and Gaming Levy (Amendment) Act No. 25 of 2025; IRD Notice 31 Dec 2025)_
- **Casino Entrance Levy (CEL) – current rate (from 1 January 2026)** — USD 100 per person entering casino/gaming establishment (or equivalent in any other convertible foreign currency, or in Sri Lankan Rupees for Sri Lankan citizens. DOUBLED from USD 50 per entrant. Collected directly by casino/gaming operators.)  _(Betting and Gaming Levy (Amendment) Act No. 25 of 2025; IRD Notice 31 Dec 2025)_
- **Online betting (new – Gambling Regulatory Authority Act No. 16 of 2025)** — Online betting is now legally recognised under the Gambling Regulatory Authority Act No. 16 of 2025. The Gambling Regulatory Authority (GRA) was established to act as a one-stop shop for all gambling licences except state lotteries. Target: full operational status by 30 June 2026. Digital Gambling Licence required; operating without a valid licence: penalty up to LKR 10 million or 2 years' imprisonment.  _(Gambling Regulatory Authority Act No. 16 of 2025)_
- **Corporate income tax rate on betting/gaming/liquor companies** — 40% percent (Applies to all companies engaged in betting, gaming, or liquor manufacturing/distribution. This is the highest corporate tax rate in Sri Lanka.)  _(IRA No. 24 of 2017 s 59; First Schedule; IRD CIT Guide)_
- **Self-exclusion and responsible gambling requirements (2025 Act)** — All licensed software must include self-exclusion tools and spending limits to combat gambling addiction. Promoting unlicensed gambling or targeting persons under 18 years is strictly prohibited.  _(Gambling Regulatory Authority Act No. 16 of 2025)_
- **Dutiable goods – liquor** — Excise duty is levied on the manufacture and import of all alcoholic beverages (beer, wine, arrack, spirits, toddy). Rates set by gazette (per litre of absolute alcohol or per unit as prescribed). Increases announced periodically in the Budget.  _(Excise Ordinance; Excise (Special Provisions) Act; IRD/Excise Dept Annual Gazette)_
- **Dutiable goods – tobacco** — Excise duty on cigarettes, cigars, and other tobacco products. Sri Lanka has significantly increased tobacco duties in recent budgets as a public health measure.  _(Excise Ordinance; Budget Circulars; Excise Dept Gazette)_
- **Dutiable goods – petroleum products (fuel levy)** — Excise duty on petroleum products (petrol, diesel, kerosene, furnace oil). Fuel excise is a key government revenue source. Note: retail sales of petrol/diesel/kerosene are EXEMPT from SSCL (from 1 July 2025).  _(Excise Ordinance; Excise (Special Provisions) Act; Budget Annual Gazette)_
- **Dutiable goods – motor vehicles** — Excise duty applies to motor vehicles imported into Sri Lanka. Additional Social Security Contribution Levy (SSCL) now also applies on vehicle sales from April 2026.  _(Excise Ordinance; Excise (Special Provisions) Act; Budget 2026)_
- **Administration** — Excise duty is administered by the Department of Excise (under the Ministry of Finance). Collection at point of manufacture or importation. Manufacturers of excisable goods require an Excise Licence.  _(Excise Ordinance; Department of Excise – www.excise.gov.lk)_
- **Revised import duty bands (National Tariff Policy – Budget 2026, effective April 2026)** — Import duty bands revised to: 0%, 10%, 20%, and 30% under the new National Tariff Policy effective April 2026. The maximum rate was raised from 20% to 30%. Para-tariffs (PAL – Port and Airport Levy; CESS on most goods) are being phased out to simplify the tariff structure.  _(Budget 2026 (7 Nov 2025); Sri Lanka Customs Tariff 2026 – www.customs.gov.lk/customs-tariff/)_
- **Anti-dumping and countervailing duties** — Anti-dumping and countervailing duties may be imposed in addition to standard import duties on products found to be dumped or subsidised, following investigation under the Anti-Dumping and Countervailing Duties Act.  _(Anti-Dumping and Countervailing Duties Act; Sri Lanka Customs)_
- **BOI / SDP exemptions** — Companies with Board of Investment (BOI) agreements and companies identified as Strategic Development Projects (SDPs) may receive customs duty exemptions and deferrals on capital goods and raw materials.  _(BOI Act No. 4 of 1978; Strategic Development Projects Act; Customs Ordinance)_
- **VAT at import** — 18% percent of CIF value plus customs duty (Collected by Sri Lanka Customs at the point of importation.)  _(VAT Act No. 14 of 2002; Customs Ordinance; IRD VAT Import Guidance)_
- **SSCL at import** — 2.5% percent (Payable by importers at the point of importation regardless of turnover threshold. Collected by Sri Lanka Customs.)  _(SSCL Act No. 25 of 2022; Customs Ordinance)_

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `sri-lanka-betting-gaming-excise` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/sri-lanka-betting-gaming-excise. If neither is available, confirm every figure against the official source pages cited above before relying on it.