Sri Lanka has officially opened its most ambitious integrated resort to date — City of Dreams Sri Lanka, a US$1.2 billion mega-development in Colombo backed by global casino operator Melco Resorts & Entertainment and Sri Lanka’s John Keells Holdings. The launch positions the island nation as a rising entertainment and tourism hub just across the water from India.
Inaugurated on August 2, 2025, the resort includes two five-star hotels with 800 rooms, a luxury casino, high-end shopping, entertainment venues, and MICE (Meetings, Incentives, Conferences & Exhibitions) infrastructure. The government has issued a 20-year gaming license, making it the first legally sanctioned casino resort of its kind in the country.
At the opening, Melco chairman Lawrence Ho stated that Sri Lanka can be to India what Macau is to China—a tourism and leisure outlet with proximity, cultural resonance, and aspirational pull for India’s rapidly growing middle and upper-middle classes.
The resort’s strategic location, just a short flight from major Indian metros like Mumbai, Delhi, and Chennai, gives it unique access to a 350-million strong consumer base with rising discretionary income. Indian tourists currently rank among Sri Lanka’s top three inbound visitor groups.
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John Keells chairman Krishan Balendra underscored that the project would generate thousands of jobs and revitalize Colombo’s urban fabric. He also noted the importance of building strong cross-border investment relationships, particularly with Indian developers, entertainment companies, and hospitality investors.
Financial analysts in Mumbai and Bengaluru view the opening as a signal that Sri Lanka is serious about foreign direct investment in high-margin sectors, including gaming, real estate, tourism, and luxury retail. With regional political stability returning, Colombo is seen as an underpriced entry point for investors priced out of Dubai or Singapore.
The City of Dreams development is also expected to act as a model for future public-private partnerships in South Asia, particularly those aligned with digital tourism, fintech-driven gaming services, and infrastructure financing.
For Indian investors seeking growth outside saturated domestic markets, Sri Lanka now presents a compelling combination: regulatory clarity, strategic location, luxury positioning, and untapped demand.
