August 05, Colombo (LNW): A legal battle is set to commence today (05) at the Colombo Commercial High Court concerning the recently launched casino complex in Colombo known as City of Dreams – Sri Lanka.
The dispute centres on allegations of a serious breach of contract tied to the development of the high-profile entertainment venue.
The lawsuit has been brought forward by businessman Ravi Wijeratne, the proprietor of Rank Entertainment Company. According to legal documents, the claim pertains to an agreement made several years ago involving multiple corporate entities connected to the casino’s development.
Mr Wijeratne alleges that commitments made under the agreement were not honoured, resulting in substantial financial loss to his company.
Rank Entertainment is seeking compensation to the tune of Rs. 15 billion from the parties named in the petition. The respondents include Waterfront Properties (Pvt) Ltd as the first respondent, John Keells Holdings PLC as the second, Hong Kong-listed Melco Resorts & Entertainment Ltd as the third, and Blue Heaven Services (Pvt) Ltd as the fourth.
This is the first court hearing in the case, which is expected to attract considerable attention due to the involvement of high-profile companies and the scale of the claims. President’s Counsel Harsha Cabral is set to represent the petitioner in court.
Separately, one of the companies involved – John Keells Holdings – is already under scrutiny in an unrelated tax investigation. Allegations have surfaced that the firm may have significantly underpaid import taxes in relation to the entry of BYD-branded vehicles into the country. Authorities are examining the importation and clearance of approximately 2,000 vehicles, with an estimated tax liability nearing Rs. 10 billion. Should the investigation result in penalties, the company could face fines totalling as much as Rs. 30 billion – three times the original amount.
