Reports from Sri Lanka indicate that the government has suspended final approval for two casinos, once of them backed by Australian casino czar, James Packer.
A bill giving the two separate casino hotels the go-ahead and granting them a 10-year tax holiday has been put on ice.
Local firm John Keells Holdings plans to invest US$650 million in a waterfront casino in the capital, in conjunction with a so-far unannounced foreign partner.
Packer’s Crown Ltd has earmarked US$350 million for a similar development.
Buddhist monks have warned they will stage protests if the government goes ahead with the projects.
Sri Lanka’s investment promotion minister denied the bill had been axed, saying it was being reworked so that the 10-year tax holiday was confined to the hotel operations and not the casino side of the business.
He said he expected the bill would be introduced sometime in November with the government hoping to take 5% of all casino revenue irrespective of profits.
