Multi-million-dollar, high end casinos planned for Colombo have boosted Sri Lanka’s ambitious hopes of becoming Asia’s new gambling hot spot, but the projects still face political and religious opposition. The country legalized gambling in November 2010, with the aim of eventually luring cashed-up tourists to the island nation and boosting an economy battered by decades of ethnic war.

The government granted approval to Sri Lanka’s John Keells group last week for a $850-million “mixed development” high end casinos, a euphemism for an entertainment hub that includes gambling. The green light was also given last month to the local partner of Australian billionaire and gaming tycoon James Packer, for a similar deal to build a $350 million lakeside resort in the heart of Colombo. Both investments have been given a generous 10-year tax holiday.

Big names coming to Sri Lanka for mixed developments is a huge boost to the (tourism) industry,” said Chandra Mohotti, chairman of the state-run Sri Lanka Institute of Tourism and Hotel Management. John Keells, the island’s biggest diversified group with interests in hotels, has not announced details but industry officials say it will include a casino with a yet-to-be named foreign partner.

Packer’s Crown Group and John Keells are betting on Sri Lanka’s post-war economic growth and rising tourist numbers for the success of high end casinos. Government officials have stressed that both projects, expected to start before the end of this year, will create thousands of jobs and attract high rollers.