From Sports Interaction – The island nation of Sri Lanka is making plans to draw in tourism and gambling revenue with multi-million dollar casinos. The country’s economy has struggled through decades of war, but is looking toward a brighter future. In this interest, it legalized gambling in November 2010 and both local and foreign interests are betting that the economy and tourism industry will be turning around and fueling an emerging gambling industry.
In the works is a $850 million gambling and entertainment hub being developed by the John Keells group which was given the green light last week. The local partner of Australian billionaire and gaming mogul James Packer received approval for a $350 million lakeside resort in the city of Colombo. The government generously approved a deal to grant both projects ten years of tax free operation.
Sri Lankan government officials are touting the economic benefits of the projects, which are expected to create thousands of jobs as well as attracting high rollers, but the opposition party is objecting. United National Party member Harsha de Silva does not object morally, but would like to see the projects taxed normally. “What we are saying is that if the country is to benefit, they must be taxed and regulated. We will not jump up and down saying we oppose casinos.” His party is pushing for heavy taxation on casinos in line with other vice industries like alcohol and tobacco. But investment promotion minister Lakshman Yapa Abeywardena says that “If we don’t offer generous tax incentives, these investors will go to some other country.”
