CHATURANGA PRADEEP SAMARAWICKRAMA 
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Gaming resort operators unfazed by impasse
The two parties who are to construct mega gaming resorts in the heart of Colombo said yesterday that they were not disturbed by the government’s delay in passing the required laws in parliament pertaining to the setting up of such resorts.The two gazette notices offering tax concessions to the Australian gaming mogul James Packer’s US $ 400 million integrated resort and John Keells Holding’s (JKH) US $ 650 million integrated resort under the Strategic Development Bill, were due to be taken up for debate in the parliament tomorrow, but were deferred due to protest from various quarters.
Crown Sri Lanka yesterday said they would continue to work constructively with the government until the proposed gaming resort in Sri Lanka gets off ground while JKH said they would not change the plans previously communicated to project stakeholders.
“Crown Resorts understands and respects the decision by the Sri Lankan government in relation to the gazettal debate. Crown will continue to work constructively with the relevant government authorities to complete the necessary approvals related to the establishment of an Integrated Resort in Sri Lanka. We look forward to the parliamentary debate in the near future,” Australia’s Crown Resorts said in a statement.
Meanwhile, JKH in a separate disclosure to their shareholders on the news of the deferment of the gazette on their Waterfront Project said, “ the company would like to clarify that the status and the scope of the project as previously communicated to shareholders has not changed”.
Both parties are unlikely to backtrack on their proposed projects given the solid steps they have already taken towards implementing them.
Packer’s Crown Investments disclosed of the Sri Lankan project named ‘Crown Sri Lanka’ to Australian Securities Exchange (AXS) just last week and also set up a dedicated website for the project.
JKH also has made a cash call to the tune of Rs.40 billion through a rights issue which was approved by its shareholders recently aiming the project. The land in Glennie’s Street is currently being cleared and contractors have called for skilled construction personnel to kick off construction work.
Meanwhile, the Investment Promotion Minister Lakshman Yapa Abeywardena said, the government will amend the bill and have new terms by November 21.
“We will describe how we are going to grant tax concessions, whether it is from the gross revenue or net revenue. We will base the tax on the gross revenue and not on the net profit. The tax concession is on investment and not on the hotel operation. We will clarify all these in the new gazette,” the minister was quoted as saying to Reuters.
The ministry over the weekend released photographs on Packer’s meeting of Sri Lankan officials and Abeywardena said he had asked Packer to invest more in the country.
“He said he was willing to bring more investments. He told us he will consider more investments in addition to this investment, but we have clearly told him we would not allow investments on more casinos,” the minister added. (Dilina Kulathunga)
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