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The Sri Lankan government will not oppose the $400 million integrated resort casino being developed by Australia's Crown Resorts if it is operated using existing licenses held by local partners, Reuters reported.
Government spokesman Kehelya Rambukwela was quoted as saying casinos would be restricted in D.R. Wiesewardena Mawata, the area where the Crown Resorts development will be built.
James Packer, chairman of Australia's Crown Resorts, has partnered with Ravi Wijeratne, a Sri Lankan businessman who owns a gaming business in the country. Packer is an investor in Macau casino developer Melco Crown Entertainment Ltd.
Reuters quoted Mr Rambukwella as saying whether Crown or another developer is not a problem for the government as long as it works with existing license holders there.
"There is no legal barrier for existing casino businesses to get new partners. Five licenses will be issued and holders of these licenses will be allowed to have one casino per license. So there will be five casinos," Mr Rambukwela added.
The government said earlier this month that no casinos would be allowed in Colombo's new development. Reuters reported that two Sri Lankan entrepreneurs have five casino approvals between them and that Wijeratne owns two of those licenses.
But Sri Lanka's main opposition party said the government was misleading foreign investors, arguing that casino licenses do not exist in the country.
"The local casino operators only have receipts to pay taxes for their casino operations. They are not licenses," one legislator told Reuters.
The Sri Lankan government has not yet implemented the provisions of the Casino Business (Regulation) Act 2010, which stipulates that after January 1, 2012, it is not allowed to engage in the business of casinos issued by the Minister "not within the authority of a valid license".
Casinos in Sri Lanka pay taxes only to the Internal Revenue Department and receive receipts. Sri Lanka's economic development ministry did not respond to GGRAsia's request for comment.
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