On August 2, 2025, Colombo witnessed the grand unveiling of City of Dreams Sri Lanka, a US $1.2 billion joint venture between Melco Resorts & Entertainment and John Keells Holdings—marking the nation’s largest private investment ever and its first fully integrated resort.

At the launch, Lawrence Ho, Chairman and CEO of Melco, issued a bold proclamation:
“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.” 

Developed over more than a decade, the resort comprises two hotels—Cinnamon Life (687 rooms, managed by John Keells) and the luxury NÜWA hotel (113 rooms, operated by Melco), along with restaurants, upscale retail, MICE (meetings/conference) facilities, residences, and offices. Melco’s role centers on managing the casino space under a 20-year license with about US $125 million in capital investment.

According to Krishan Balendra, Chairperson of John Keells:
“This project with an investment of US $1.2 billion is expected to generate a significant multiplier effect for the Sri Lankan economy. Thousands of jobs across construction, retail, technology, hospitality, FDI…”

He described the launch as “a defining moment”—a signal to global investors that Sri Lanka is open, stable, and investable after years of political and economic challenges

Ho’s Broader Thesis: Sri Lanka as India’s Macau

Melco’s vision extends beyond a slot-machine destination. As Ho emphasized:
“It’s about helping to elevate Sri Lanka’s global profile and contributing to its tourism economy. A development of this scale has a cascading effect — it drives demand for local products, services and supply.” 

He further clarified that unlike Macau—a compact city drawing mainly on gaming—Sri Lanka offers a richer, more varied experience:
“Sri Lanka is a place where you can spend a week or two. I was lucky to visit Bentota Beach, go on safari, and see Kandy and the mountains. It’s truly a country of natural beauty… VIP guests from Macau and the Philippines… were blown away.”

Melco’s expansion into Sri Lanka marks its first foray into South Asia, joining its global resorts in Macau, Manila, and Cyprus.

What's at Stake: Economic Revival and Tourism Goals

Built to attract affluent travelers from India, the Middle East, Russia, and China, the resort leverages Colombo’s strategic proximity to India’s major cities and its well-developed air links.

Balendra sees potential beyond tourism:
“This project… will raise Colombo’s profile on the global map. It will create thousands of jobs and open SME opportunities, stimulating demand for local products… We expect it to contribute meaningfully to GDP growth and trigger infrastructure development in surrounding areas.” 

This comes after Sri Lanka approved a formal gaming legal framework in 2023, paving the way for such developments and enabling Melco’s entry as operator.

Early indicators look promising: winter bookings are reportedly ahead of the previous year, according to Balendra’s remarks.

Conclusion

City of Dreams Sri Lanka is more than a glitzy new casino resort—it’s a symbol of Sri Lanka’s aspirations to transform into a regional luxury tourism hub. With Melco’s expertise and John Keells’ national roots, the resort pushes Colombo into new territory: international high-end hospitality, business‑travel infrastructure, and aspirational branding.

Time will tell whether this vision becomes reality—but the opening of City of Dreams Sri Lanka marks a historic moment that could redefine South Asian tourism and catalyze economic transformation.