Sri Lanka is pinning its future on the gambling industry, attempting to attract high-end tourists from China and India with casinos in exchange for the urgently needed foreign exchange income. At the beginning of this month, President Disanayake personally inaugurated the $1.2 billion "Studio City Sri Lanka" integrated resort. The project, developed in collaboration with Macau's Studio City Group and a local consortium, also introduced gambling regulatory legislation, intending to make the gambling industry a new economic engine.
According to government plans, Sri Lanka's tourism target for this year is 3 million visitors, expected to bring in $5 billion in foreign exchange. Currently, tourism accounts for about 4% of GDP, and officials hope to increase this to 10%, with high-end gambling seen as a key breakthrough. Deputy Minister of Tourism, Ruwan Ranasinghe, openly stated that tourists from China and India are the most important targets, especially since both countries enjoy a visa-free policy, which will attract more wealthy clients to Sri Lanka.
Lawrence Ho, Chairman of Studio City Group, stated at the ceremony that the potential of Sri Lanka's gambling and tourism "has just begun to be unleashed." He emphasized that the country's geographical advantages and natural resources are expected to make it the next international gambling hotspot.
However, not all voices are optimistic. Critics point out that the new gambling law gives too much power to the Minister of Finance, does not include the national lottery, and the penalties are clearly too lenient, which may make effective regulation difficult. There are concerns that without institutional constraints, the gambling industry may lead to social problems such as money laundering and public security.
Whether Sri Lanka can turn its economy around with the gambling industry or fall into new risks remains to be seen. This gamble has just begun.
