The large-scale integrated resort project "City of Dreams Sri Lanka" is progressing smoothly, with parts of the hotel, dining, and banquet facilities operated by the Cinnamon Life brand opening in October 2023. The project is a joint venture between Melco Resorts & Entertainment and local real estate developer John Keells Holdings PLC.
Chairman Krishan Balendra revealed in the latest annual report that the remaining construction of the project is in its final stages, including the NUWA hotel with 113 rooms and its accompanying casino, expected to commence operations in August 2025.
According to the report, Melco Resorts & Entertainment will be fully responsible for managing the operations of the NUWA hotel and casino. The NUWA hotel is located on the top five floors of the main resort building and has a dedicated passage connecting it to the casino. The casino space is about 16,725 square meters, nearly the size of two to three international standard football fields, providing ample gaming experience space for tourists and high-end players.
The Cinnamon Life hotel section has been operational since last year. Krishan Balendra noted that as the demand for international conferences and events gradually recovers, the hotel's occupancy rate is steadily increasing. The opening of the casino in August this year is expected to further drive hotel guest traffic and overall revenue. Additionally, the installation of casino equipment has already begun, and recruitment and training of staff are steadily underway, with core management and technical positions nearly ready.
Krishan Balendra emphasized that Melco Resorts & Entertainment has committed an investment of $125 million in this project, making it one of the largest foreign direct investments in Sri Lanka in recent years. Melco not only introduced its "City of Dreams" brand to the project but also brought its high-end "NUWA" brand, marking its long-term confidence and strategic commitment to Sri Lanka's tourism and gaming market.
It is noteworthy that the Sri Lankan government has proposed several gaming industry tax reforms in the 2025 fiscal budget. According to the latest regulations from the National Revenue Authority, all gaming operators with monthly revenues exceeding 1 million Sri Lankan rupees (about HK$27,183) must pay a monthly total income tax. Additionally, from April 1, 2025, the relevant corporate income tax rate will increase from 40% to 45%, and the special gaming tax will rise from 15% to 18%. The casino entry fee will also double to $100 per person (about HK$780).
John Keells Holdings stated in the report that although the increased tax burden will pose certain challenges to the industry, the company remains optimistic about the market prospects of "City of Dreams Sri Lanka." With the full opening of the resort, the project is expected to become an important landmark for high-end tourism and gaming entertainment in South Asia, attracting regional and international visitors.
