Inside Asian Gaming

INSIDE ASIAN GAMING | December 2013 40 FEATURES Officially, the Crown and John Keells projects aren’t casinos at all. They’re “mixed developments” of a type identified in broad-based legislation that aims to lure similar projects with 10-year exemptions on corporate income tax and other incentives. But as Mr Rajapaksa is learning, there is no euphemizing investments of this scale. The United National Party, the main opposition in Parliament to his governing coalition of secular and religious parties, has been trying for months to force a debate on the tax breaks. They consider the Crown and Keells projects, along with the existing industry, to be illegal. It’s not certain how far they’re prepared to push this, however, and they’re heavily outnumbered in Parliament. They did manage to stage an outdoor rally early in November in Colombo to protest the gaming bill. But the government had already withdrawn it at that point. Officially the talk now is of amending the terms of Crown’s deal, and this is likely to result inmodifications to the promised tax holiday. “I haven’t prepared the cabinet paper yet,” Investment Minister Lakshman Abeywardena said recently. “These days you can’t do it because we are busy with the budget. There is no hurry. These are long-term projects, and we are aiming to start by 2015-2016. You have time.” Mr Wijeratne said, “Possibly [the bill] will go through once the Parliament starts in the first week of January, so one month does not make any difference.” It’s with respect to the religious parties that the Rajapaksas know they must tread carefully. The Buddhist clergy has no desire to undercut the president, fearful as they are of a resurgent Tamil separatism. One of these parties, the influential Bodu Bala Sena, or “Buddhist Strength Force,” has railed against “so-called democrats” it says are destroying the Sinhalese race, whose “unofficial police” the BBS claims to be. The party was implicated in anti-Muslim riots earlier this year in which thousands took part. Mosques were firebombed. Muslim Crown’s plans call for a 400-room luxury resort in the capital of Colombo in partnership with Ravi Wijeratne, owner of Rank Holdings, the biggest operator in the existing casino market. John Keells, the country’s largest public company, is planning an 800-room resort in the capital priced at $650 million. Both will feature an array of dining, shopping, entertainment and leisure attractions and significant conference and meeting space. businesses were attacked. It was reported in some instances that the police stood by and did nothing. The clergy are not comfortable either with a gaming industry of the size the Rajapaksas say the economy needs. They’ve succeeded to date in legislating limits on the sale of alcoholic beverages, which is heavily