Casino deal to be inked soon
The Board of Investment (BoI) will sign the final agreement with the Crown Group, owned by Australian business magnate and casino owner James Packer, within the next fortnight.
He is
The BoI will sign the final agreement with the James Packer-owned CrownGroupsoon
said to invest US$350 million in a Mixed Development Project (MDP) at D.R. Wijeywardene Mawatha in Fort, Investment Promotion Minister Lakshman Yapa Abeywardhana said yesterday.
While flatly dismissing the allegation that the government had not issued a single Casino permit, the minister said billionaire entrepreneur James Packer’s arrival in Sri Lanka would be a boost to the business sector and the country’s image globally.
The Crown Group and Rank Holdings, which is a Sri Lanka – Australia joint venture would build a 36-storey entertainment complex including a 400-room hotel.
“It is wrong to say that we have given James Packer huge concessions. The tax relief was given under the provisions of the Strategic Development Act. Other MDP investments such as Krrish, Shangri-La and the Water Front Properties Pvt. Ltd with the initial investment of US$850 million had also been given similar concessions,” the minister said.
Responding to opposition allegation that Crown Group and Rank holding had been granted unprecedented tax relief, he said big-time investors cannot be attracted to Sri Lanka without offering them attractive concessions and that was how Vietnam, Singapore and Macau had establish lucrative casino and gaming businesses.
The minister rubbished the opposition charge that James Packer has been exempted from Income Tax, VAT, Economic Service Charge, Nation Building Tax, Port & Airports Development Levy, Customs Duty and Cess for more than 10 years. His investment would provide 2,600 direct job opportunities.
The opposition charged that the country would lose a minimum of US$100 million a yea by way of the tax relief given to Mr. Packer.
The minister said casinos may have been in operation in the country on permits issued under the Betting and Gaming Levy Act (BGLA) of 2001 but the government has no intention of issuing permits for casinos, not even for Packer and added that the Government could not prevent anyone starting a casino un
der the BGLA.
The opposition charged that the country would lose a minimum of US$100 million a year