By: Staff Writer
October 01, Colombo (LNW): The Supreme Court (SC) has commenced hearings on a petition alleging a significant loss of Rs. 85 billion to the State, following a controversial decision by the previous government to grant a casino license for the Lotus Tower in Colombo. The petition, brought forward by Ven. Malgalle Sujatha Thero, claims that the government led by President Ranil Wickremesinghe issued the license at a rate far below the market value, violating new regulations.
President’s Counsel Navin Marapana, representing the petitioner, argued before the court that the government had issued a casino license to Golden Island Hospitality Ltd. for the Lotus Tower for just Rs. 500 million. This decision was made in July 2024, despite new regulations requiring a much higher investment of $250 million (approximately Rs. 75 billion) along with a Rs. 10 billion license fee. Alternatively, regulations stipulated that a license could be obtained with a $500 million investment and a Rs. 5 billion license fee. Marapana stated that by not adhering to these regulations, the government caused a substantial financial loss to the state, amounting to at least Rs. 85 billion.
The casino in question, Majestic Pride Casino, is to be operated by Golden Island Hospitality Ltd., a subsidiary of the Majestic Pride Group, which currently manages two casinos in Goa, India, and one in Kathmandu, Nepal. In August, Golden Island Hospitality Ltd. announced its partnership with the renowned Majestic Group Hotels and Casinos, one of India’s leading gaming enterprises, to establish Majestic Pride Casino in Sri Lanka.
The Finance, Economic Stabilisation, and National Policies Ministry of Sri Lanka granted the casino business license under the Casino Business (Regulation) Act No. 17 of 2010. Additionally, an agreement between Golden Island Hospitality Ltd. and the Board of Investment of Sri Lanka was signed on 1 August 2024 under Section 17(2) of the Board of Investment of Sri Lanka Law No. 4 of 1978, cementing the establishment of this new venture in Sri Lanka’s gaming and hospitality sector.
The Attorney General’s representative, Senior State Counsel, requested additional time to gather instructions and respond to the matter. The Supreme Court granted this request, allowing the respondents to file limited objections if necessary. The case has been rescheduled for further hearings on 14 October.
Appearing on behalf of the petitioner, Navin Marapana was joined by attorneys Kaushalya Molligoda and Uchitha Wickremesinghe, instructed by Sanath Wijewardane. The legal battle highlights growing concerns over potential fiscal mismanagement and irregularities in major government decisions involving large-scale investments. The outcome of this case could set a significant precedent for how such deals are scrutinized in the future.
