Colombo – August 27, 2025. Sri Lanka has set an ambitious target to raise tourism’s share of GDP from the current 4 percent to 10 percent by 2030, positioning casino-driven integrated resorts as a cornerstone of its economic recovery strategy.
The opening of City of Dreams Sri Lanka earlier this month marked a milestone. Backed by John Keells Holdings and Melco Resorts & Entertainment, the US$1.2 billion resort in Colombo offers 800 rooms, a luxury retail complex, and MICE facilities. It also features a large-scale casino, making it the first fully fledged integrated resort in South Asia.
Government projections call for 3 million tourist arrivals in 2025, up 50 percent year-on-year, with tourism revenues expected to climb from US$3.7 billion in 2024 to US$5 billion this year. Analysts point to India and China as the most critical feeder markets, both offering growing outbound demand and, in China’s case, restrictions at home that increase overseas gaming appeal.
From chaos to control: Sri Lanka drafts law to regulate gambling industry
A new Independent Gambling Regulatory Authority has been established under recently passed legislation, tasked with licensing, monitoring compliance, and ensuring transparency in financial flows. This move is seen as essential to win investor confidence and to differentiate Sri Lanka from less regulated regional competitors.
Sri Lanka’s city of dreams offers indian investors a new frontier in integrated resorts
Industry observers note that Sri Lanka is seeking to replicate aspects of the Macau and Singapore models, blending gaming with non-gaming attractions to maximize yield per visitor. The government has also pledged to align AML/FT oversight with international standards to avoid reputational risk. For Asian operators and investors, Sri Lanka’s pivot represents both an opportunity and a test. If execution is successful, Colombo could emerge as a new gaming hub for South Asia, strategically positioned between India’s outbound middle class and Chinese premium players.
