Sri Lanka John Keells Holdings project gaming tax policy set out

Chief Regulatory Officer at CSE Renuke Wijayawardhane presenting the listing certificate to Executive Chairperson at Renuka Hotels Shibani Thambiayah

July 19, 2013 (LBO) – Profits from gaming at a large resort to be built by John Keells Holdings in Sri Lanka’s capital Colombo will be charged corporate taxed at “applicable rates”, but rents would be exempt, a government notice said. A similar resort in Colombo, Lake Leisure Holdings, in a joint venture between Australia’s Crown and Sri Lanka’s Rank Holdings, both with ongoing gaming operations.

Analysts expect the two resorts to draw high spending tourists from India, the Middle East and also China.

John Keells Holdings is to build a 650 million US dollar resort with a “luxury hotel, convention centre, entertainment and gaming facilities, international standards shopping mall, luxury condominiums, serviced apartments and office space.”

Under a second phase, another 100 million dollars may be invested.

The notice issued under Sri Lanka’s strategic investment law by the investments promotions minister gives the project a full income tax holiday for 10 years and another 15 years at 6.0 percent of profits from non-gaming revenues.

If the project has gaming activities “the profits from this activity shall be liable for corporate tax at the applicable rate,” but rents collected as landlord from “operators o