Facing protests from within the ruling coalition, the Sri Lankan government has put on hold plans to offer tax concessions to firms for operating casinos.
President Mahinda Rajapaksa presided over a special meeting yesterday where it was decided to hold back approval for establishing two casino centres in Colombo.
Government sources said that members of the ruling coalition including the JHU (heritage party) and the Sri Lanka Muslim Congress opposed the casino centres.
Lakshman Yapa Abeywardene, the investment promotion minister said that the government will issue new gazettes clarifying tax breaks and is also looking to come up with rules to address concerns raised.
The proposed tax breaks to large casino resorts to be built by local firm John Keells Holdings and Australia's Crown group would be presented to parliament for final approval this week.
Abeywardene said a 5 per cent tax will be charged on the operations. However, the opposition claims that other casino centres such as Macau charged 40 per cent on gaming revenues while Singapore charged taxes around 20 per cent.
Abeywardene said that ruling coalition met yesterday and their views were sought on the proposed resorts.
He said the government would address concerns including restricting the entry of locals.
Australia's Crown Resorts are to invest USD 400 million in the project.
The main opposition UNP also said yesterday it would shut down casinos when it comes to power.
