Vesak Ban Extension on Casinos Sparks Outrage in Sri Lanka
Sri Lanka's tourism industry has kicked against the government's decision to extend the ban on liquor sales and casino operations during the Vesak Poya festival.
LISTEN TO THIS ARTICLE:When it was recently announced, the Cabinet of Ministers said the ban would only last for the two days of the Vesak holiday, but now, they are prolonging it by one more day.
The Cabinet made the decision following a May 5 circular from the Home Affairs Division, which directed the Finance Ministry to ban liquor sales and access to casinos, betting centers, and nightclubs from May 12 to 14.
However, industry players have slammed the move, warning that the decision will harm the tourism sector and cost the government Rs. 3 billion in lost revenue.
The extended ban poses a challenge to establishments such as casinos and nightclubs, which rely heavily on tourists and often see increased patronage after holidays. It will also affect hoteliers and restaurateurs who worry that the three-day ban will deter tourists and reduce foreign exchange earnings.
Stakeholders fear that the ongoing closure of entertainment venues will discourage tourists from visiting and spending money in the country. For these businesses, the situation is more frustrating given the government's failure to provide a reason for the extended ban.
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It has been a long-standing tradition in Sri Lanka to restrict access to certain establishments, such as casinos and nightclubs, on Vesak Full Moon Poya Day and the following day.
During past holidays, foreign tourists were permitted to buy alcohol within hotel premises, which helped stabilize the country's economy.
With this year's unexpected policy change, sources within the Department of Excise estimate that the state would lose Rs. 800 million to Rs. 1 billion in daily revenue.
This is the second significant hurdle the land-based casino industry has had to confront this year. In February, the Sri Lankan government announced an increase in casino entrance fees and turnover tax on gaming establishments. It also raised taxes on tobacco and alcohol companies.
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