Australian gaming mogul James Packer's Crown Group says it has scrapped plans for a $US350 million ($A451.2 million) resort in Sri Lanka after the new government banned casinos and axed tax breaks for the project.
Packer had been planning the 450-room luxury resort after the previous regime offered the tax concessions in efforts to turn the Sri Lankan capital Colombo into a regional gaming hub.
But President Maithripala Sirisena's government on Thursday cancelled the concessions and said it would not allow casinos in the resort after opposition from Sri Lanka's influential Buddhist monks.
"Crown Resorts respects the (government's) decision and on that basis the project would not be going ahead," a Crown spokesperson told AFP in an email on Friday.
The company had not begun construction although regulatory approvals were granted in December 2013.
President Sirisena, who swept to victory in January 8 elections backed by the country's main party of monks, pledged to end the tax breaks during his campaign.
The previous government led by Mahinda Rajapakse had introduced concessions, including a five per cent rate for gambling operators, in a bid to boost tourism numbers.
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