Sri Lanka: Parliament approved one of the three controversial casino legislations

2014-04-25

Reading time 1:33 min

(Sri Lanka).- The government of Sri Lanka received parliamentary approval for one of the three controversial gazette notifications that according to the opposition will provide tax concessions to casinos in the country and legalize them. The legislation was passed in parliament yesterday evening with a majority of 71 votes.

According to reports from parliament, 113 votes were received in favor of the project while 42 were against it and 68 parliamentarians abstained from voting.

Jathika Hela Urumaya (JHU) MP, Ven. Aturaliye Ratana Thero was the only governing party parliamentarian who voted against the legislation.

The United National Party (UNP), Tamil National Alliance (TNA) and the Marxist party JanathaVimukthiPeramuna (JVP) MPs voted against it.

Ministers Rauff Hakeem, Wimal Weerawansa, Champika Ranawaka and Rishad Bathiyutheen were not present in the Chamber when the vote was taken.

Activists of Sri Lanka's main opposition United National Party (UNP) held a protest against the government's attempt to get parliamentary approval for legislation that would grant tax concessions for two projects to set up casinos and gaming facilities in the country.

Hundreds of Sri Lankan opposition party members gathered at the proposed site of the Crown Multi-Purpose Development Project at D.R. WijewardeneMawatha in Colombo to protest against the project of Australian gaming tycoon James Packer.

Packer has agreed to invest US$350 million to build a 36-story skyscraper which will be known as 'Crown Colombo' in the heart of Colombo for a casino and gaming enterprise to be opened in 2016. The large scale casino project, which is identified as a mixed development project, has been categorized under the Strategic Development Projects Act.

Earlier, the government granted Packer a 10-year exemption from income tax in addition to a further concessionary 6 percent tax rate for 12 years among other tax concessions. Later, the gazette notification granting tax concessions to Packer was withdrawn from parliament due to opposition protests.

The cabinet also approved a similar development by the diversified conglomerate, John Keells Holdings (JKH), to build a multi-function resort at a cost of US$ 650 million.However, the parliament approved a new order under the Strategic Development Projects Act, which according to Minister DilanPerera, will not grant tax concessions for casinos and opening a new Casino is not allowed under the act.

President Mahinda Rajapaksa, while addressing the media personnel also said the government is not in preparation to establish the casino trade in the country.