Sri Lanka cabinet approves integrated resort investments

Feb 19, 2014 (LBO) – Sri Lanka’s cabinet of ministers had approved investment concessions for three integrated resort projects which appear to limit income tax cuts to gaming, according to public notices published. The concession are then approved by the cabinet and tabled in parliament.

The tax concession for gaming ran into controversy, with opposition legislator Harsha de Silva in particular taking up the case and the three projects are now going though the process for a second time.

But Sri Lanka’s parliament had already lifted value added tax from gaming and limited gaming revenue based taxes to only 5.0 percent, before the projects were approved.

Legislator Harsha de Silva also opposed the bill at the time, saying taxes on gaming revenues ranged close to 20 percent where income tax was also charged (as in Singapore) or 60 percent where there was no corporate income tax.

Government gazette notices for Lake Leisure Holdings (Private) Limited (connected to Australia’s James Packer), Waterfront Properties (Private) Limited. (connected to John Keells Holdings) and The Queensbury Leisure Limited connected to entrepreneur Dhammika Perera said corporate income tax holidays and import duty concessi