Sri Lankan lottery board officials have raised alarm over a widespread illegal gambling operation based on official lottery numbers, describing it as a crisis second only to drug abuse in terms of social impact.

An underground gambling scheme known as "Kotu Kepima" has expanded significantly across Sri Lanka over the past four to five years, according to officials from the National Lotteries Board and Development Lotteries Board who appeared before the Committee on Public Enterprises. The illegal operation allows bettors to wager on the final two digits of official lottery draws, with stakes ranging from Rs. 100 in rural areas to as much as Rs. 100,000 in affluent regions.

Chairman of the National Lotteries Board Cyril Anthony Perera characterized the gambling practice as a serious social crisis, ranking it as a concern second only to drug abuse in terms of severity. The scheme originated in villages around four to five years ago with modest betting amounts but has since grown substantially, with wagers varying based on local economic activity. In paddy-farming areas such as Manampitiya, bets can reach Rs. 30,000 per number combination, while gem-mining areas like Ratnapura have recorded bets exceeding Rs. 100,000.

Operators have leveraged technology to expand the racket, using WhatsApp groups to conduct betting operations and distribute misleading information suggesting that monthly lottery draws occur in advance and are released daily. The illicit gambling has reportedly caused significant financial hardship, with many individuals losing land and property. The National Lotteries Board has received numerous complaints from women whose husbands have become addicted to the practice.

Perera stated that despite previous complaints lodged with the Inspector General of Police, the State Intelligence Service, and other law enforcement bodies, no substantial action has been taken to address the issue. He warned that continued expansion of the illegal gambling operation threatens both the financial viability of Sri Lanka's lottery boards and the economic security of ordinary citizens.