Packer’s Crown Resort-Casino faces further delays
A US $400 million Sri Lankan resort and casino complex planned by Australia’s Crown Ltd faces additional delays and is unlikely to be approved before the end of the year, a top government official said yesterday.
The new delay comes after opposition politicians alleged Crown’s chief, gambling tycoon James Packer, was getting concessions not given to local entrepreneurs. Buddhist leaders also said the casino could be detrimental to the culture of Sri Lanka, a predominant Buddhist country where gambling is not accepted morally, despite the on-again, off-again presence of casinos dating back to the 1990s.
raises revenues and it levels the playing field in terms of retailers,” he added.
However, he expressed concerns over the increasing import and export taxes as it goes against trade liberalization and competiveness.
“We fully agree with the goal of establishing food security for a country but at the same time the import substitution as an ideology is a total failure. It’s a matter of fact,” he said adding that it would have been much more sensible to promote exports in the areas of comparative advantage.
Although the IMF demonstrated a positive view about the Sri Lankan economy, they project a real GDP growth of 6.5 percent for 2013 below the 7.5 to 8 percent growth projected by the Central Bank.
Though Dr. Mathai has observed the absence of an inflation pressures, IMF projects 7 percent inflation by the end of 2013. 2.26 percent stake in Taprobane Holdings PLC. Meanwhile Taprobane and Caledonian Securities Limited hold 28.91 percent and 27.72 percent of the issued share capital of DPL parent company, Lanka Century Investments PLC as at 30th September 2013.
Previously Taprobane held a 9 percent stake with BIL. However the company sold its stake to a Brown and Company related party for Rs.730.4 million in January this year.
The government said in October that Packer’s plans would be resubmitted to parliament by Nov. 21 with altered terms to address the various objections, but the country’s Investment and Promotion Minister, Lakshman Yapa Abeywardena, said the deal “might not” be approved by the end of the year.
“I haven’t prepared the Cabinet paper yet,” Abeywardena told reporters in Colombo. “These days you can’t do it because we are busy with the budget. There is no hurry. These are long-term projects and we are aiming to start by 2015-2016. You have time.”
Crown has confirmed that it was in detailed discussions with the Sri Lankan government and potential joint venture partners regarding the development of a 5-star integrated resort.
The resort-casino complex is planned for a two-acre plot in the heart of the Colombo commercial hub. It has already been delayed once after the government asked Lake Leisure Holdings, the joint venture between Crown Ltd and its local partner, Rank Entertainment Holdings Pvt Ltd, to change its construction plans.
Officials with the local partner downplayed the latest delay. “Possibly it will go through once the parliament starts in the first week of January, so one month does not make any difference,” Ravi Wijeratne, the owner of Rank Holdings, told Reuters. Officials with Crown were unavailable for immediate comment.
Packer’s earlier deal had already been approved by the government’s cabinet, but Abeywardena said the deal must be approved