Sunday Dec 15, 2024
Sunday Dec 15, 2024
Thursday, 28 March 2013 00:25 - - {{hitsCtrl.values.hits}}
Casino kingpin and billionaire James Packer is in town again for a second time, to firm up what would be Sri Lanka’s single largest gaming venture along with a resort in Fort.
James Packer, whose father is the media mogul Kerry Packer, was in town in mid-February as part of initial talks with officials.
At that time he met with Economic Development Minister Basil Rajapaksa as well as Treasury Secretary Dr. P.B. Jayasundera.
Though the Daily FT broke the news in its 19 February issue, the development was kept under wraps. However, subsequently Investment Promotion Minister Lakshman Yapa Abeywardena confirmed the visit by Packer Jr.
Opportunities being explored include a $ 350 million gaming venture down D.R. Wijewardena Mawatha, which the Government is keen to develop as an entertainment centre. It will be an integrated resort with a mega hotel. Packer’s venture Melco Crown recently clinched a deal to set up the first gaming venture in the Philippines (see boxed story).
His local business partner is gaming industry specialist and influential Ravi Wijeratne.
Rated as the third richest Australia by Forbes magazine with an estimated wealth of $ 6 billion, Packer Jr. inherited control of the family company, Consolidated Press Holdings Limited, which controls investments in Crown Limited, Consolidated Media Holdings and other companies.
Early this month, the main Opposition United National Party (UNP) MP and economist Dr. Harsha de Silva told media that the Government’s hurried plans to amend 21 acts, including the Betting and Gaming Act, apparently facilitated the James Packer deal.
De Silva also questioned as to why casinos had been included in the Strategic Development Act, which is only meant for projects that promote social and economic welfare for the entire population. Given the moral risks, he even called on the Bodu Bala Sena (BBS) to pay attention to such steps taken by the Government.
“These special projects are supposed to significantly enhance the social and economic benefits of this country and what is being done with this legislation is to invite casinos and gaming operators into Sri Lanka under the Strategic Development Act. So what happens under this Act is that these people are given enormous tax benefits, some going as much as 25 years of tax exemptions. I must also say that out of the nine casinos operating in Colombo, only five are registered, as was revealed at the Consultative Committee Chaired by the Commissioner General of Inland Revenue. So is this the equitable tax distribution of this country, when you charge Rs. 85 for a tin of canned fish, when you charge Rs. 28 on a Rs. 100 reload for a phone? Why don’t they register the large casinos in the city?”
Dr. de Silva charged that it was unfair to give massive tax exemptions to lucrative businesses but tax every item essential for the poor.
