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Packer to pitch Sri Lanka resort as UNP seeks police action
Nov 11, 201311:09 PM
Australian billionaire James Packer will visit Colombo this week to lobby the Sri Lankan government over his plans for a five-star resort, Australian media reported.
The Crown chairman is expected to meet key government officials and potential joint venture partners on Wednesday, according to AAP.
He will also be a keynote speaker at the Commonwealth Business Forum in Colombo ahead of the opening of the Commonwealth Heads of Government Meeting, which Australian Prime Minister Tony Abbott will attend.
Crown announced in mid-October it was in “detailed discussions” with the Sri Lankan government and potential partners regarding a $US450 million five-star resort and casino.
The 450-room Crown Sri Lanka would be located on Beira Lake in the Colombo resort district.
The Sri Lankan parliament and board of investment is considering whether to grant investment approvals and tax concessions for the project, which is also subject to final agreement between joint venture parties.
Concerns have been voiced by local Buddhist leaders that a casino could lead to social problems.
Opposition members of parliament have raised concerns about the level of tax breaks being offered to foreign investors.
Sri Lanka’s main opposition party on Monday demanded that police take action against the Australian gambling tycoon, saying his plan to build a casino in Colombo has no proper licence.
United National Party MP Harsha de Silva said the casino should be located offshore rather than in the heart of Colombo, where it would “pollute” customs. He also criticised the government’s promise of extremely low taxation for a decade on Packer’s investment.
The police last week arrested 43 people in an illegal gambling centre in Colombo for unlawful gaming.
“If the police can apply the law on small time casinos, then the police must also apply the same law on the big time casino,” de Silva told reporters after filing a complaint with the police.
He said operating a casino without a licence is a crime according to the “rule of the land”. He urged police to investigate and take action to ensure that no crime is committed.
But the government is expected to approve the resort, which could employ up to 2500 Sri Lankans and provide hospitality training.
Australian cricket captain Michael Clarke has been recruited by Crown to support its employment and training programs in the cricket-mad island nation.
Promotional material describes the resort as offering “signature dining experiences and entertainment offerings, conferencing and event spaces, gaming areas, retail outlets and a specially designed water feature attraction”.
- AAP/Reuters
