Packer gets nod for Sri Lanka resort, but not casino James Packer has received approval from the Sri Lankan government to build a resort in Sri Lanka, but without explicit approval for the casino, which underpins the proposed $400 million project. Crown confirmed that the resort had received cabinet approval, but denied reports that it would automatically be able to transplant the casino licence of its Sri Lankan partner into the project. ""Crown is still in discussions with the government on the gaming side of the project,"" said a company spokesman. Sri Lanka's deputy investment promotion minister, Faizer Mustapha, told Reuters that a new gazette notification had been issued for Mr Packer's project and two other similar casino resort proposals, but without any mention of casino approval. The gazette notification means the proposals have received cabinet approval and will be presented to parliament where the current government has a large majority. He reiterated that government policy was not to issue any new casino licences, but pointed out that there was a separate mechanism for casino operations in the country via existing licences. It has fed speculation that the three projects will be able to transplant the casino licences of Sri Lankan partners into the luxury resorts. Crown's proposal was expected to be approved last year, but was delayed after opposition by religious leaders and politicians in Sri Lanka forced the government to alter tax concessions granted to its consortium. The changes delayed the passage of legislation granting tax concessions to the project in October. Sri Lanka's Investment Promotion Minister, Lakshman Yapa Abeywardena, said the decision to alter the deal's terms came after opposition politicians said Crown was getting concessions not given to Sri Lankan entrepreneurs. Buddhist leaders also said the casino could be detrimental to Sri Lanka's culture. In November, Mr Packer delivered a speech in Colombo before the Commonwealth Heads of Government Meeting. He said a luxury casino resort was a necessity if Sri Lanka was to achieve its potential to become "a leading tourist mecca for the rising middle class of India, China and the rest of Asia"." Mr Packer said Sri Lanka's "ambitious"" tourism targets were "only achievable with the right tourism infrastructure and attractions"." He cited the success of Singapore in turning around its performance as a tourism destination with the development of two integrated casino resorts. "The demographic changes we are seeing in India and China are extraordinary,"" Mr Packer said. "The size of the middle class in India currently stands at around 170 million and is estimated to be growing by 40 to 50 million per annum over the near term."" He cited a McKinsey study which said income levels were expected to almost triple and the size of India's middle class population base could swell to 580 million by 2025. India's gambling market is limited to two states, Goa and Sikkim, and laws prevent direct foreign investment.