IRD has issued a reminder to bookmakers and gaming operators that the monthly levy on gross collections for May 2026 must be paid by 7 June 2026. Businesses with monthly gross collections exceeding LKR 1 million are required to pay the levy at a rate of 18%, with penalties applying for late or non-payment.
The Sri Lankan Inland Revenue Department (IRD) has reminded taxpayers engaged in bookmaker and gaming businesses of their obligation to pay the monthly levy on gross collections for the month of May 2026 by 7 June 2026.
The notice, issued for the 2026/27 year of assessment, reiterates that a levy of 18% is imposed on the gross collections of bookmaker and gaming businesses. The levy is payable on a monthly basis where a business’s gross collections exceed LKR 1 million per month.
Monthly levy requirement
Under the levy regime, operators whose monthly gross collections surpass the LKR 1 million threshold are required to calculate and remit the levy based on their total gross collections for the relevant month.
For May 2026 collections, payment must be made on or before 7 June 2026.
The IRD described the announcement as a reminder to ensure timely compliance and avoid penalties associated with late payment.
Payment arrangements
The department stated that levy payments should be made through any branch of the Bank of Ceylon.
Taxpayers were also advised that payments made by bank draft or pay order will only be regarded as settled once the payment instrument has been realised. If the realisation occurs after the statutory due date, the payment will be treated as late, even if the draft or pay order was submitted beforehand.
Penalties for late payment
The IRD emphasised that penalties apply where the levy is not paid by the due date or where payment is made late.
The department urged affected businesses to ensure that payments are completed within the prescribed timeframe to avoid additional charges and enforcement action.
