Australian media report that billionaire James Packer’s Crown Group says it will not go ahead with a proposed plan to develop a $400 million luxury hotel and resort in Colombo, following a decision by the Sri Lankan government to scrap tax concessions for the project.

Crowns group of companies owned by James Packer had been commissioned to construct a 400 million US dollar luxury hotel and resort in close proximity to the Beira Lake in Colombo.

Yesterday, the new government decided to cancel generous tax concessions for three resort developments – including Packer’s resort – and said it would not issue them licenses to run casinos.

A spokeswoman from Crown said the company respected the decision and on that basis the project would not be going ahead.

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