Sri Lanka casino fears as James Packer's Crown gets go-ahead

Sri Lanka's parliament approved a US$400 million development by Australian casino operator Crown Resorts - but said it would not be allowed to open a casino.

The hotel and shopping complex proposed by Australian gambling tycoon James Packer's company is opposed by religious leaders and opposition parties.

They fear it will eventually be allowed to operate a casino, something they see as a threat to traditional Buddhist morality.

Economic Development Minister Basil Rajapaksa said that would not happen.

"We will not allow casinos. I emphasise that. They [investors] asked [for permission for casinos], but we did not grant permission and we will not allow it in future either," he said at a heated debate in parliament. Opponents were sceptical, noting that excluding a casino at the resort had not been written into law.

"Why is the honourable minister misleading this house, the entire country, and the Buddhist clergy? I have the gazette with me," opposition lawmaker Joseph Michael Perera told parliament, referring to the official journal that publishes legislation.