Sri Lanka will reach a critical moment in the development of its tourism industry on August 2 this year: the luxury integrated resort "City of Dreams" with an investment of up to 1.2 billion US dollars will officially open to the public. This is the largest private tourism project in the country's history and symbolizes Sri Lanka's ambition to restart its high-end tourism market after political and economic crises.
The project is jointly developed by the local group John Keells Holdings (JKH) and the Hong Kong-listed casino giant Melco Resorts & Entertainment, located in the heart of the capital Colombo, covering hotels, casinos, retail, dining, performing arts, and exhibition six major formats.
Among them, the five-star brand hotel Nüwa under Melco will officially open, providing 113 luxury rooms, and forming a dual-brand linkage with the existing 687-room Cinnamon Life Hotel under JKH. The casino part has obtained a rare 20-year operating license in South Asia, marking a major turning point in Sri Lanka's gambling legislation as it is the first time such a long-term license has been issued.
At the same time, the Sri Lankan government is also accelerating the construction of the regulatory system. According to the approval of the Finance Committee in June 2025, the new regulations allow the legal import of casino equipment and will introduce unified regulation through the upcoming "Gambling Regulatory Authority Act". In addition, the government also plans to increase both the entry tax and gambling tax to enhance fiscal revenue.
JKH Chairman Krishan Balendra stated that the completion of the City of Dreams is not only a key milestone in the company's development but will also reshape the standards of hotels and entertainment throughout South Asia. Melco Resorts & Entertainment's Chairman Lawrence Ho emphasized that the project will be an important engine for promoting tourism and economic growth in Sri Lanka.
In addition to gambling and accommodation, the City of Dreams will also offer a convention center, international artist performance venues, high-end dining experiences crafted by celebrity chefs, and incorporate environmental facilities and local cultural projects, emphasizing the dual orientation of sustainable development and local cooperation.
Overall, the launch of the City of Dreams not only symbolizes the revival of Sri Lanka's tourism industry but also provides a new strategic fulcrum for the country to compete for high-end tourist resources in South Asia. With the opening of luxury entertainment and legal gambling industries, Sri Lanka is trying to position itself as a new generation of Asian tourism and leisure hubs.
