In August 2025, the gambling giant made a striking statement at the launch ceremony of the luxury project "City of Dreams" in Sri Lanka: Sri Lanka will become the "Macau" of the Indian subcontinent, bringing unprecedented economic transformation. He predicted that Sri Lanka's annual gambling revenue could reach $2.5 billion in the next decade, and with the completion of this integrated resort, the gambling landscape in South Asia is undergoing profound changes.
Macau Experience and Colombo's Grand Blueprint
Sri Lanka's development strategy clearly draws on the success of Macau. In 2024, Macau's gambling revenue reached $28.3 billion, a nearly 24% increase year-on-year, consolidating its position as the largest gambling market in the world. As the nearest gambling destination to India, Colombo's "City of Dreams" is seen as an important springboard to leverage India's explosive wealth growth.
The ultra-high net worth population in India continues to grow, with the Knight Frank Wealth Report showing that India gains 165 new millionaires every day, with an annual growth rate of 11%. Executives from Melco International revealed that the initial annual revenue of Sri Lanka's gambling market is expected to reach $250 million, with potential growth to $500 to $750 million within five years, demonstrating strong potential.
$1.2 Billion Catalyst: The Influence of the City of Dreams
"City of Dreams" is not just a luxury resort, but a revolution in the entertainment industry in South Asia. Krishan Balendra, Chairman of John Keells Holdings, emphasized that this $1.2 billion project will create thousands of jobs in construction, retail, hospitality, and technology sectors, and attract a significant amount of foreign direct investment.
The project is Melco's first integrated resort in Sri Lanka, granted a 20-year license under the new gambling regulatory framework of 2023. Data from August 2025 shows that the group's hotel winter bookings are significantly higher than last year, indicating strong demand for high-end travel.
Indian Wealth Wave Drives Regional Development
India currently has 169 billionaires, controlling over $675 billion in assets, with wealth continuing to concentrate. The IMF predicts that India's GDP will reach $7 trillion by 2030, generating more high-net-worth individuals. Unlike India's strict restrictions on casino development, Sri Lanka, with its clear regulatory environment, becomes an ideal gambling and resort destination for these wealth groups.
Multiple Industries Benefit, Driving Regional Economic Upgrading
The booming gambling industry has driven growth in real estate, aviation, finance, and technology sectors. Sri Lanka's real estate is expected to attract $2-3 billion in Indian investment over the next five years, with high-end residential properties favored by billionaires. Colombo now has direct flights to 11 Indian cities, with the number of flights expected to double in the future, and a surge in demand for private aviation services.
In terms of financial services, Sri Lanka is developing into an offshore wealth management center, with asset management scale expected to reach tens of billions of dollars over the next decade. The IT industry is also undergoing digital upgrades driven by gambling technology needs, with annual investments expected to exceed $300 million.
Future Outlook: Growth Blueprint from 2025 to 2045
The Sri Lankan gambling market will undergo three phases of development:
From 2025 to 2030, invest $3 billion to build 2-3 integrated resorts, achieving $500 million to $1 billion in gambling revenue, and hosting 2-3 million high-end Indian tourists.
From 2030 to 2035, expand to 4-5 resorts, with gambling revenue increasing to $1.5-2 billion.
From 2035 to 2045, the market will mature and stabilize, with 5-7 resorts generating $2-2.5 billion in revenue, becoming an important gambling destination in the region.
This path, although not as large as Macau, is robust and realistically feasible.
Economic Multiplier Effect and Social Impact
The growth of the gambling industry will significantly boost tourism, infrastructure, and tax revenue. Tourism revenue is expected to increase by 15-20%, directly creating tens of thousands of jobs. Infrastructure investment is expected to reach $5 billion, with tax revenue potentially reaching $200 to $400 million per year.
Geoff Davis, CFO of Melco International, pointed out that the City of Dreams is not just a luxury project, but a key driver in enhancing Sri Lanka's international image and tourism economy.
Addressing Challenges, Achieving Sustainable Development
Despite great opportunities, Sri Lanka still faces challenges such as political stability, policy consistency, and social responsibility. The government must ensure the effective operation of gambling regulatory agencies and prevent social issues caused by gambling.
Infrastructure construction needs to be accelerated to eliminate bottlenecks restricting economic growth. The World Bank predicts that Sri Lanka's economic growth will slow to 3.5% by 2025, highlighting the need to address structural issues.
Conclusion: Sri Lanka's Path of Transformation
With a clear strategy and reasonable expectations, Sri Lanka is moving towards becoming the leading gambling and entertainment destination in South Asia. Although it cannot immediately compare with Macau in scale, its potential cannot be ignored. As India's wealth continues to accumulate, Sri Lanka is facing a historic economic opportunity, potentially achieving $2.5 billion in gambling revenue over the next twenty years, creating tens of thousands of jobs, and driving overall economic growth by 3-4%.
Geoff Davis, CFO of Melco Finance, concluded: "India is a highly potential market, and if Sri Lanka's gambling strategy is properly implemented, it will become a dazzling gem on the gambling map of South Asia."
