City of Dreams Sri Lanka Casino set for August 2025 launch: reports
The much-anticipated casino at City of Dreams Sri Lanka, to be operated by Melco Resorts & Entertainment Ltd, is on track for an August 2025 opening. The announcement was made via the latest annual report from John Keells Holdings Plc, the local partner in the multi-million-dollar integrated resort project located in the heart of Colombo.
Casino and hotel near completion
Krishan Balendra, chairperson of John Keells, confirmed that the finishing and fit-out work for the 113-room Nuwa Hotel and the casino is nearly complete. He stated, “The completion of the remaining elements of the City of Dreams Sri Lanka integrated resort project is progressing well, with the fit-out and finishing works relating to the 113-key Nuwa hotel and the casino near complete for its planned opening in August 2025.”
Melco Resorts will manage both the casino and the Nuwa hotel. The Nuwa brand is already established in Melco’s resorts in Macau and Manila. At City of Dreams Sri Lanka, the Nuwa Hotel will occupy the top five floors of the main tower and have direct access to the casino floor.
Gaming area and facilities
The upcoming casino will span 180,000 square feet (approximately 16,725 square meters), offering one of the largest gaming areas in the region. Recruitment and training for staff are underway, with many key positions already filled.
Balendra noted that gaming equipment installations will begin shortly to ensure the facility is fully operational by the target date.
Financial model and investment
Melco Resorts is investing $125 million into the project, marking one of the largest foreign investments in Sri Lanka since the country’s economic crisis. Under the business model, Melco will earn EBITDA from the gaming operations after paying John Keells 50–55 percent of the earnings. The remaining amount will then be subject to a 30–40 percent income tax.
The licence for gaming operations was granted for a 20-year term starting from 1 April 2024. According to Melco International Development’s March 2024 filing, the licence cost LKR5 billion (around $16.7 million).
Wider integrated resort offering
City of Dreams Sri Lanka also includes the Cinnamon Life hotel, a 687-key property launched in October 2023. John Keells manages the hotel, which also features a 149,000 square foot retail mall. The firm expects hotel occupancy to increase significantly after the casino launch, driven by higher tourism and international events.
Updated taxation and fees
Sri Lanka’s 2025 budget has introduced higher taxes for gaming businesses. As of 1 April 2025, corporate tax for betting and gaming entities rose from 40 percent to 45 percent. The gross collection levy also increased from 15 percent to 18 percent, applied on gross monthly collections exceeding LKR1 million.
Additionally, the entrance levy for casinos doubled from $50 to $100 per visitor.
