James Packer’s Crown group faces a new set of hurdles in his quest to open a $US400 ($457) million casino in Sri Lanka after threats by the country’s president that new gaming levies will be imposed should he win the upcoming January elections, the Age news agency reported.

Sri Lankan President, Mahinda Rajapaksa announced new funding measures in his latest budget.

This includes a $100 entrance fee and a 10 per cent gaming levy on three proposed casino resorts, including one venture that includes Mr Packer’s Crown Ltd.

Crown confirmed that it is still in discussions with the Sri Lankan government and did not comment further. 

Mr Packer has been actively pursuing clearance for his proposed mixed-use resort development in Sri Lanka.

In May this year the government gave approval for all three projects to go ahead, without the casinos, and also granted 10-year tax breaks - despite strong opposition.

The opposition UNP and some of Mr Rajapaksa’s own coalition partners who broke ranks voted against the tax concessions but the government has a comfortable majority in the 225-member legislature and the legislation was passed.

There has been speculation that the three projects would be able to operate as casinos by transplanting the licences already held by local partners.

Crown is undertaking the push into Sri Lanka with a local partner, Rank Holdings, which holds two casino licences. Mr Packer has previously remarked that Sri Lanka’s ambitious tourism targets were “only achievable with the right tourism infrastructure and attractions” and cited the success of Singapore in turning around its performance as a tourism destination with the development of two casino resorts.