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Colombo opened up for casinos
View(s):Gazette notification allows gaming centres outside restricted zone
The Government will not restrict casinos to a zone in D.R. Wijewardene Mawatha, Colombo 10, but will allow similar ventures in other parts of the city, according to a gazette notification issued last week.
The notification, issued under the Strategic Development Projects Act, states that permission has been granted to a project company to set up an integrated resort inclusive of gaming facilities on land situated at Glennie Street and Justice Akbar Mawatha Colombo 2.
The Government has repeatedly said it will relocate casinos to a specified zone —which it named as D.R. Wijewardene Mawatha in the Fort/Maradana area —and take measures to regulate them. However, while the Casino Business (Regulation) Act was passed in 2010, regulations have not been made to give effect to the Act. Gaming is still illegal in Sri Lanka, despite several casinos openly being in operation.
The latest project will be carried out by Waterfront Properties (Pvt) Ltd, whose majority shareholder is John Keells Holdings. The proposed resort will be built in two phases with the minimum investment envisaged to be US$ 650 million.
It will consist of multiple businesses including “a luxury hotel, convention centre, entertainment and gaming facilities, international standards shopping mall, luxury condominiums, service apartments and office space”, the gazette states.
The proposal is nearly identical to that made by Lake Leisure Holdings (Pvt) Ltd, the company that will set up Australian casino mogul James Packer’s resort in D.R. Wijewardene Mawatha. Its local partner is Rank Holdings, owned by businessman Ravi Wijeratne who already runs a casino named Marina Colombo.
Mr. Packer’s project was also gazetted last week. It will comprise “a minimum 400 room hotel with meeting and convention facilities, gaming activities, fine dining restaurants and other associated facilities”.
Both businesses have been granted tax waivers in view of being Board of Investment projects. However, despite pledging a larger investment, Waterfront Properties (the JKH concern) will pay tax on its gaming activities. The gazette states that corporate income tax will not be imposed on Waterfront Properties “on the profit and income generated from the non-gaming activities” for ten years.
In contrast, Lake Leisure Holdings will be exempt from corporate income tax on “the profit from the Company to be generated from the activities of the Project” for ten years. This applies also to revenue from its casino.
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