The soon to be announced results of presidential polls in Sri Lanka could decide the fate of the island’s fledging casino industry.
Incumbent President Mahinda Rajapaksa, seeking an unprecedented third term, is facing a stiff challenge at the election from his one-time Minister of Health Maithripala Sirisena in the keenly contested polls called two years before they were due.
Parliamentary elections are also likely to be called within the first half of 2015, extending the period of political uncertainty. An opposition victory at the elections will impact upon all the new casino projects. The opposition manifesto released on December 19 said that all tax breaks given to new casino-related projects, including those granted to James Packer’s Crown Resorts, will be withdrawn.
Three multi-million dollar projects that include casinos that have been approved by the Sri Lankan parliament in the last year. By far the most prominent is Crown’s $400m investment in a new casino in the business heart of the capital, Colombo.
The Sri Lankan parliament gave approval for the project without a casino on April 25 last year. The casino is likely to be set up using the licence of a local partner. However, the project has faced severe criticism from hard-line Buddhist parties, some of whom were constituents of the government.
