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Developers, including Packer, wanted casinos to be part of all three luxury resorts, but the government rejected the plans, Economic Development Minister Basil Rajapakse said.
He did not give a reason for the move, but opposition figures have raised fears that the casinos could lead to prostitution. Although prostitution is illegal in Sri Lanka, foreign and local prostitutes frequent small-scale gambling operations in the country. Buddhist monk Athuraliya Rathane, a legislator, said his party opposed the new hotels because of worries gambling would spur prostitution and harm Buddhist culture.
The main opposition United National Party UNP staged a demonstration in Colombo Thursday accusing the government of encouraging prostitution through gambling. The government gave approval for all three projects to go ahead, minus the casinos, and also granted year tax breaks — despite opposition. The palm-fringed island nation legalised casinos in December , but the legislation has never been implemented.
Sri Lankan officials have said they hoped high-end casinos could boost tourist arrivals to 2. Tourism suffered when government forces were locked in a decades-long combat with separatist Tamil Tiger rebels till , but with the end of fighting, the hospitality trade has grown steadily.
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