Casinos: Development or social upheval

Foreign Direct Investments in Sri Lanka are governed by Board of Investment Law No. 04 of 1978 and Strategic Development Project Act No. 14 of 2008 and subsequent amendments made thereto.


The definition of Strategic Development Projects as set out in SDPA No. 14 of 2008 are as follows :-
i.        Project which is in the national interest
ii.        Which is likely to bring economic and social benefits to the country
iii.        Which is also likely to change the land scale of the country through the strategic importance attached to the proposed provisions of goods and services which will be benefited to the Public, the substantial inflow of Foreign Exchange, substantial employment opportunities and transformation of technology.
The quintessence of the objects set out in both BOI Law No. 04 of 1978 and SDPA No. 14 of 2008 is nothing but the development of the country through FDI.
It has been categorically emphasised in the SDPA that development so envisaged should essentially be focused on national interest, economic and social benefit of the country and the general public at large.




In that context it is questionable whether casino trade being integrated with some world class Leisure Projects or otherwise would contribute towards the national interest and real socioeconomic development of the masses of this country ?
Those who supported and those who opposed casino trade have accepted unanimously without any dispute that Casino trade would bring in mainly the casino culture to this country. None of them could deny that Casino culture is not integrated with world class gambling, womanising, drugs liquor and mafia culture. Would people of this country be benefited by introducing that kind of culture to our society ?
At a glance it appears that the Government has approved only Integrated leisure projects. Accordingly no Casino project has been approved specifically. However there is a possibility that these leisure projects with SDP status can incorporate Casinos within their projects as facilities they need to satisfy foreign tourists and to be on par with world class leisure industry through the passage of commercial operation of the projects concerned.




This objective could easily be achieved as and when required, under Casino Business (Regulation) Act No. 17 of 2010. Section 2 sub-section 1 of this Act provides “no person shall, from and after January 1, 2012 engage in the business of casinos other than with the authority of a valid licence issued for that purpose by the Minister and within a specific area designated by the Minister by order published in a Gazette.”
In that context any existing Casino Project could be continued and any number of new Casino projects could also be inaugurated subject to the obtaining of a valid licence from the Minister and also subject to compliance with regulations to be gazetted by the Minister to that effect after they are approved by Parliament. This is a very simple process for any political party which possesses a simple majority in the Parliament.
































It may be noted that there is no provision in Casino Business (Regulation) Act No. 17 of 2010 to the effect that no licences will be issued to launch new Casino projects in Sri Lanka.
Those who support Integrated Leisure projects with Casinos have cited the following points in  their favour.
World class casino facilities in Integrated leisure projects is a must for attracting foreign tourists specially Chinese who are very fond of casinos. (quoted from speech given by the Minister of Foreign Investment)
This is not a sound evaluation with empirical evidence on the impact of the casino industry. It only justifies that a handful of tourists who can afford world class casino facilities would be engaged in them while it has no impact on tourists who cannot afford to gamble at casinos. On the other hand it has nothing to do with national interest or socioeconomic development of the people of this country as stressed in the SDP Act No. 14 of 2008.




It may be noted that most of the foreign tourists are motivated to visit Sri Lanka because of its fascinating environment, attractive beaches right round the Island, eco-tourism, historical and cultural heritage of Sri Lanka and the peace and tranquility that now exists after the defeat of terrorism. Casinos will only attract a handful of tourists who can afford world class casinos. It is presumed that unlike during the days of economic prosperity in the past a majority of Tourists at present prefer the simple and economical way of relaxation in Sri Lanka instead of frittering away their limited Foreign Exchange at Casinos.
The critics who support the casino industry have argued further that it would bring in a massive quantum of FDI to the country, it would earn much needed Foreign Exchange and it would also create much needed job opportunities for the youths in this country.




However it may be noted that unlike projects engaged in manufacturing and construction sectors, the benefits of FDI brought in by casino projects would be accrued within a handful of people who invest in it and who are engaged in that industry. The benefits will not trickle down to the masses unless collecting taxes therefrom and channelling the revenue so collected for socioeconomic development of the country. Unfortunately the Government had decided to award massive tax concessions for Integrated Leisure Projects where casinos could also be housed as major components of the leisure facilities. As a result the Government has to forego a massive volume of revenue for the sake of casinos which would have otherwise been utilized for real socioeconomic development of the masses.




Even the employment opportunities that would emerge through casino projects will not be accessible or acceptable to rural youth because of the fact that rural youths hardly possess trainable potentials that will suit the Casino Industry and they are not ready to move to cities for jobs in casinos.
Finally it is worth mentioning at this stage that the casino culture is not in keeping with the “Mahinda Chinthanaya” and “Pancha Seela” (Five precepts) and instead World Class Casinos would undoubtedly promulgate a culture enriched with gambling, womanising, drugs, liquor and the mafia. Is this degeneration in the national interest of this nation or the socioeconomic development of the masses of this country?