Sri Lanka’s largest private investment and South Asia’s first integrated resort officially launched with its casino opening on August 2nd, with Melco Chairman Lawrence Ho declaring the island nation could become “India’s Macau” as his company expands into the lucrative South Asian gaming market.
The $1.2 billion City of Dreams Sri Lanka project in Colombo represents a landmark collaboration between Hong Kong-listed Melco Resorts & Entertainment and local conglomerate John Keells Holdings, marking Melco’s first venture into South Asia after successful operations in Macau, Manila and Cyprus.
“Sri Lanka can be to India what Macau is to China … Macau is by far the biggest gaming market in the world. Colombo is the closest destination to India, and an integrated resort like this gives the city a lot of potential.”
Lawrence Ho
The property, more than a decade in the making, features two hotels with 800 rooms combined, adult gaming facilities operated under a 20-year license, seventeen restaurants and bars, luxury retail spaces, and extensive conference facilities. The development specifically targets affluent tourists from India, the Middle East, Russia and China.
Economic catalyst amid recovery
John Keells Group Chairperson Krishan Balendra emphasized the project’s significance for Sri Lanka’s economic recovery following years of political turmoil and financial crisis. The resort was originally conceived in 2010 as the country emerged from a 25-year civil war, weathering subsequent challenges including the 2019 Easter bombings, the COVID-19 pandemic, and a severe economic crisis.
“This project with an investment of $1.2 billion is expected to generate a significant multiplier effect for the Sri Lankan economy,” Balendra said, highlighting thousands of jobs created across construction, retail, technology and hospitality sectors.
The development required a formal legal framework for gaming, introduced in 2023, enabling Melco to enter the market. Ho described the project as helping to “elevate Sri Lanka’s global profile and contributing to its tourism economy” through its cascading economic effects.
Regional gaming ambitions
The resort positions Colombo as a potential regional gaming hub, capitalizing on India’s growing affluent middle and upper classes. Ho noted that India’s proximity to Sri Lanka, combined with the integrated resort model, creates significant potential for the destination.
“Sri Lanka is perfectly positioned as a gateway to key feeder markets,” Balendra said. “India in particular is showing tremendous growth in its affluent middle and upper classes.”
Early indicators suggest strong market reception, with Balendra reporting that winter bookings at the group’s hotels, including the new resort, are ahead of the previous year. The opening featured Bollywood actor Hrithik Roshan performing at a star-studded launch event.
Ho acknowledged the ambitious nature of the project, recalling his first visit to Colombo in 2013 when he was shown initial renderings. “We’ve built some pretty amazing properties around the world, but this one seemed impossible,” he said. “And today, we are standing in this iconic building.”
