Australian gaming tycoon Packer eyes $350 mn Sri Lanka resort

James Packer’s Crown Ltd is in talks with a Sri Lankan partner to build a $350 million hotel and leisure resort in the Indian Ocean island nation, as the Australian gambling tycoon looks to expand his global reach.

Packer is betting on rapid economic growth in Sri Lanka, fuelled by Chinese infrastructure investment, following the end of the country’s civil war in 2009.

Sri Lanka’s proximity to a huge pool of potential gamblers in India and rising inbound tourism numbers are also proving attractive.

But the Sri Lankan government and Crown appeared to be at odds over whether the development would include a casino. Lakshman Yapa Abeywardena, Sri Lanka’s investment promotion minister said the proposed project would be 45 percent owned by a local entrepre- neur he did not identify, and would create 2,600 direct jobs.

“This is not a casino business and we have not granted any tax concessions which are adverse to the country,” Abeywardena told parliament, responding to a question raised by an opposition member. “This will be with a minimum 400-room star class hotel complex and related services including retail shopping, entertainment facilities, fine-dining restaurants, and meeting and convention facilities.”

However, a Crown source with knowledge of the discussions told Reuters the company was planning an integrated resort complex, including a casino. The source said talks were ongoing but no decision had been made.

Crown did not immediately reply to requests for formal comment. Packer, one of the richest men in Australia, met with Sri Lankan ministers in February to discuss hotel and entertainment investment options as he expands his global gambling business, which already spans casinos in Australia, Macau, Britain and the United States.

Sri Lanka has allowed casino gambling on and off since at least the 1980s and currently has about nine small-scale properties. The country is attracting further interest as its economy is pegged to grow 7.5 percent this year. It is targeting about $1.5 billion in foreign direct investment after missing its $2 billion target in 2012.

After Packer’s February visit, Sri Lanka’s parliament sought to amend its Betting and Gaming Levy Act to increase gambling business registration fees and impose a 5 percent tax on gaming turnover.