Sunday 11 May 2014

Govt. now says: Packer can have casino

By Mario Andree
Ceylon FT: Contradicting President Mahinda Rajapaksa and Minister of Economic Development Basil Rajapaksa's statements, government spokesman Keheliya Rambukwella said that Australian billionaire and gaming tycoon James Packer would be able to operate a casino in his Sri Lankan investment of US$ 400 million, as a result of restricting casino operations in the country to D. R. Wijewardena Mawatha.

Uncertainty loomed as to whether Australian gaming tycoon James Packer would go ahead with his Sri Lankan investment, when the government decided to not allow a casino, and his local partner said he was 'simply fed up'. However the new move has been encouraging for Packer and Wijerathne.

Refusing to comment on the authorized body to issue casino licence, he said that the Australian gaming tycoon or any investor would be able to operate a casino in projects through a joint venture with a local licence holder.


According to officials there were five casino licences in Sri Lanka held by two businessmen. Local gaming mogul Dhammika Perera owns three, and Rank Holdings Chairman currently holds two. The government has made it clear that it will not be issuing new licences.

The new update was contradicting various statements made by leading government officials, including President Mahinda Rajapaksa, Economic Development Minister Basil Rajapaksa and Minister of Investment Promotion Lakshman Yapa Abeywardena.

Australian billionaire and gaming tycoon James Packer entered Sri Lanka mid last year to invest US$ 400 million on two acres of land at D. R. Wijewardena Mawatha, partnering Sri Lanka's Rank Holdings headed by Ravi Wijerathne.


The project and two other local blue chips, John Keells Holdings and local gaming mogul Dhammika Perera's, came under serious criticism following gazette notifications which mentioned that the first two projects approved by cabinet included casinos.

Later the Ministry of Investment Promotion amended the gazettes excluding the casino and concessions for such activity, and replacing it with 'Associated Facilities' which words raised suspicions as they were ambiguous.


According to Rambukwella's statement all the five casinos will have to shift their operations to D. R. Wijewardena Mawatha since it would be restricted to the area.

Local gaming mogul Dhammika Perera will also be able to operate a casino in his upcoming project, Queensbury, as already one of his casinos was located at D. R. Wijewardena Mawatha. The other two casinos, MGM and Bellagio too will have to relocate to D. R. Wijewardena Mawatha.

However, local blue chip John Keells Holdings which too entered into an agreement following Packer's proposal to construct an integrated casino resort, according to the new move will not be able to operate such activity.

The projects were opposed by the main opposition and others who believed that the casinos being included in the projects would promote prostitution and damage the Sri Lankan culture.

When the three projects were approved by parliament, both President Mahinda Rajapaksa and Economic Development Minister Basil Rajapaksa said they would not allow casinos.
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