New government no friend of gaming
The government of Sri Lanka has decided to toss out a proposed $100 casino entry fee, which was instituted in 2015 but never formally approved. Though it removed the onerous levy, which would have applied both to local and foreign players and was opposed by casino operators, the government has proposed increasing the casino tax and doubling the cost of a yearly gaming license.
According to CalvinAyre.com, in its proposed 2016 budget, the government raised the annual tax from Rs200 million (US$1.4 million) to Rs400 million. It has also proposed a 30 percent flat tax on gaming operations—less than the previous 40 percent tax, but no great bargain considering that it could also impose a surtax of 25 percent of income tax liability on betting and gaming profits, reported the website.
President Maithripala Sirisena, who took power in January with the strong support of religious authorities, is no fan of the gaming industry in Sri Lanka. Earlier this year, his administration tabled a plan to approve three new casino resorts planned by Lake Leisure Holdings Ltd., Queensbury Leisure Ltd. and John Keells Holdings.
Lake Leisure, a joint venture of local casino magnate Ravi Wijeratne and Australian firm Crown Resorts, planned to develop a $350 million casino resort in Colombo. In February, Sri Lankan Prime Minister Ranil Wickremesinghe publicly told Packer, “Please don’t come—not in this lifetime. We need only good investors … we don’t want an economy relying on casinos.”
