Sri Lanka Changes Position to Allow Crown Casinos

Sri Lanka will not oppose the casino planned for a $400 million mixed-use resort being developed by Australia’s Crown Casinos if it is operated using an existing license held by a local partner, a top government official said on Thursday.

The government’s latest stance on casinos is contrary to what it said on April 25 when Australian gambling tycoon James Packer’s Crown project was approved by the country’s parliament. At that time the government said no casino would be allowed in the resort.

Opponents of casinos believe they will lead to a boom in prostitution and damage religious values and culture in the mainly Buddhist island nation.

But the gambling industry has been operating there in one form or another since at least the 1980s when many five-star hotels had their own in-house casinos featuring free drinks and food as well as floorshows in addition to the blackjack and baccarat tables.

Government spokesman Keheliya Rambukwella said casinos will be restricted to D.R. Wijewardena Mawatha, the area where Crown Casinos has planned the hotel and anybody can operate casinos in that area if they have a licence held by a local partner.

Rambukwella declined to comment on which government agency is authorised to issue casino licences and regulate the industry.

Rambukwella said whether it was Crown or another developer did not matter to the government as long as they worked with a local, existing licence holder.

“There is no legal barrier for existing casino businesses getting new partners. There are five licences issued and these licence holders can have one casino per licence. So there’ll be five casinos.” He added that there would be no new licences issued.

Government officials have told Reuters that two Sri Lankan entrepreneurs have five casino approvals between them. Packer’s Sri Lankan partner, Ravi Wijeratne, owns two, and local business tycoon, Dhammika Perera, owns three.

Wijeratne and Perera could not be reached for comment. Officials with Crown Casinos did not respond to requests for comment.