City of Dreams Sri Lanka recorded EBITDA of LKR388.72 million ($1.15 million) in the second quarter of 2026, supported by improved hotel occupancy, higher room rates and a continued ramp-up in casino operations.
The result compared with an EBITDA loss of LKR999.73 million ($3 million) in the same quarter of 2025, according to the latest results from local partner John Keells Holdings (JKH).
However, JKH noted that the year-on-year comparison was not on an equivalent basis. The previous-year result included only the Cinnamon Life hotel, while the latest quarter covered all components of the integrated resort, including the Nuwa hotel, casino and shopping mall.
Hotel EBITDA increased on higher occupancy and average room rates, despite increased ramp-up costs and electricity expenses. The property was also affected by weaker regional travel demand linked to the conflict in the Middle East.
Sri Lanka’s tourist arrivals fell by 9 percent year-on-year during the April-to-June period. JKH said accommodation, international conference and event bookings indicated improving demand from August onwards.
The company described the casino’s performance as ‘steadily improving’. However, JKH continued to recognize only fixed rental income from the gaming operation. A variable rental component will apply once the casino reaches an undisclosed performance level.
The casino and Nuwa hotel are operated by Melco Resorts & Entertainment. The EBITDA reported by JKH covers the entire integrated resort and does not represent Melco’s casino EBITDA.
Despite the operating improvement, City of Dreams Sri Lanka recorded a pre-tax loss of LKR5.85 billion ($17.4 million), widening from LKR4.19 billion ($12.5 million) a year earlier.
The latest loss included LKR2.52 billion ($7.5 million) in depreciation, amortization and interest expenses. The depreciation of the Sri Lankan rupee also generated an LKR3.72 billion ($11.1 million) exchange loss on the project company’s US dollar-denominated loan.
