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a casino in Colombo saying it had documentary evidence to prove that the ‘integrated development project’ at D.R. Wijewardane Mawatha was in fact a cover-up for a mega casino complex.
The UNP claimed that Investment Promotion Minister Lakshman Yapa Abeywardena was lying in Parliament about Government land being granted for the project and said Packer’s local partner Rank Car Park Lanka Ltd. had announced on its official website that the Urban Development Authority owned land would be used to build a casino complex.
Addressing a media briefing yesterday, UNP National List MP and Economist Harsha De Silva said a document tabled by Economic Development Minister Basil Rajapaksa in Parliament on 22 September 2011 titled ‘Land allocated by UDA for private developers’ had allocated two acres in Fort opposite Lake House for a hotel and car park project.
“When Minister Abeywardena was asked if Government land had been granted for the project, he clearly said no. If it is not Government land, then whose land is the UDA allocating for the project?” De Silva charged.
The land has been sold at Rs. 3.6 million per perch, De Silva said, far lower than land sold for projects including the Krrish Square and Shangri-la which bought land in Fort at Rs. 10 million per perch.
“Is this the Government surveyor’s minimum valuation? How can land at this location be significantly less than land sold for the Krrish project in the same area? Where is the tender process for the allocation of this land?” De Silva queried.
Countering Government claims that the ‘mixed development project’ did not include a casino run by Packer and his local agents, De Silva said Crown Casinos Australia’s local partner Rank Holdings was indicating that a gaming centre would most certainly be constructed on the premises allocated by the Government.
Reading from the Rank Holdings’ website, the parent company of Rank Car Park Lanka, De Silva said: “This company operates on a leased land of approximately 2.5 acres situated at the heart of Colombo city belonging to the Urban Development Authority (UDA). This will be the main portion of the land which will be utilised to build the newly integrated hotel, apartment and casino complex.”
“Who is telling the truth?” he questioned. De Silva charged that the Investment Promotion Minister had also lied in Parliament about the fact that the Government had identified the Crown Casinos investment as a project under the Strategic Investment Act.
“Minister Abeywardena clearly stated it was not a strategic investment project, but the Finance Ministry has in writing instructed the Board of Investment to ensure that if Packer’s Crown Casino invests more than $ 350 million, it be given all rights of concessions including income tax breaks and most significantly exemptions from the Betting and Gaming Levy,” the UNP Legislator said.
De Silva said it was ironic that while most countries allowed the casino industry to exist in order to increase Government revenue, Sri Lanka’s ruling party was attempting to give casino moguls a tax holiday.
“The three sources of revenue in countries that a Government can always rely on are the tobacco industry, the alcohol industry and the gaming or casino industry. The Sri Lankan Government is getting ready to give them massive tax breaks. This project will be granted concessions on eight types of taxation and will also be free from exchange controls,” he claimed.
De Silva said that if the Government planned to introduce casinos to Sri Lanka, three conditions had to be fulfilled. He called for the establishment of a gaming regulator to begin with. “There is a gaming regulator in almost every country in which casinos operate. Packer is very well aware that whether it be in his native Australia or Singapore or Macau, he will have to abide by the regulator’s dictates,” the UNP MP said.
Secondly and thirdly, De Silva said that there had to be a minimum 40% tax on casinos and the Government must be transparent about the dealings.
“Stop trying to cloak this as an integrated project; discuss the issue with all stakeholders and find a transparent and viable way to do this, otherwise withdraw the moves,” he charged.
