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Sri Lanka’s main opposition has said it would withdraw generous tax concessions for controversial foreign-funded resorts aiming to make Colombo a gambling hotspot in South Asia if it wins next month’s elections. |
President Mahinda Rajapakse’s government is facing an unexpectedly tough challenge in the national elections from Maithripala Sirisena, who has united opposition forces.
In his manifesto unveiled on Friday, Sirisena said the special tax status granted to three planned casino resorts would be withdrawn — a promise that targets the Buddhist vote bank in an attempt to erode Rajapakse’s rural support base.
“I will withdraw the concessions given to the casino projects,” he said in his manifesto which also vowed to launch a major offensive against
narcotics.
Sri Lanka’s influential Buddhist clergy had opposed allowing three casino resorts, including one with investments from Australia’s gambling mogul James Packer.
But Colombo gave them tax holidays in December 2013.
Then in April, the government said they will not issue casino licences to the three mega resorts, yet made it clear that existing local gambling operations could move into them.
The palm-fringed island nation legalised casinos in December 2010, but the legislation has never been implemented.
Tourism suffered during the decades-long combat with separatist Tamil Tiger rebels. But with the end of fighting in 2009, the hospitality trade has grown steadily and the authorities had banked on casinos to lift the industry.
None of the proposed gambling resorts have opened in Colombo yet, but several local casinos have been in operation for decades, exploiting legal loopholes.
Packer’s proposed 450-room Crown Sri Lanka resort — which once promised on its website to offer “world-class gaming facilities” — is yet to begin construction.
The other two resorts are a $650mn development from local conglomerate John Keells Holdings and a $300mn project by local businessman Dhammika Perera.
The country’s main party of Buddhist monks is backing Sirisena who defected from the government last month to challenge Rajapakse at the January 8 presidential election.
Western nations have piled pressure on Rajapakse and his brothers - also in government - over allegations of war crimes as the army crushed the Tamil Tiger separatists, as well as
ongoing rights abuses.
Sirisena’s party said he would establish independent commissions to secure the impartiality of the judiciary, police and other public services, and crack down on corruption to boost growth.
“The extent of corruption in Sri Lanka in the last few years is unprecedented and unheard of,” Sirisena said in the manifesto.
“I would achieve for the country 10 times the development that actually occurred during the past six years,” he wrote.
Sirisena has gained support in urban areas as well as from ethnic minority Tamils, Muslims and Christians. The main opposition United National Party supports him.
Rajapakse was expected to glide easily to a third term. But Sirisena, who served as health minister in his cabinet, is proving to be a tough opponent.
