Melco Resorts and Entertainment confirmed that City of Dreams Sri Lanka, described by the company as the first integrated resort in Sri Lanka and in South Asia, opened on 1 August 20251. The property in Colombo was built by John Keells Holdings, the largest listed conglomerate on the Colombo Stock Exchange, and is Melco's first project in the region2.
Melco operates the Nüwa hotel and the casino and entertainment zone, and a wholly owned local subsidiary holds a 20-year casino license issued by the Government of Sri Lanka2. The resort has two hotels, Cinnamon Life City of Dreams Sri Lanka with 687 rooms and Nüwa Sri Lanka with 113 rooms, seventeen restaurants and bars, a luxury retail promenade, event and conference facilities, and residential and office space2. AGB reported the project cost $1.2 billion and that it targets affluent tourists from India, the Middle East, Russia and China4.
The opening date is reported differently across sources. Macau Business, published on 1 August 2025, said Melco was "set to open City of Dreams Sri Lanka tomorrow, August 1"1. Melco's own property pages state the resort "officially opened on August 1, 2025"2, and Melco International's milestones page says it "officially opened in August, 2025"3. AGB, published on 3 August 2025, said the resort was "officially launched with its casino opening on August 2nd"4.
"It's the first integrated resort in Sri Lanka and in South Asia, catering to the premium segment of the Indian customer base."
AGB reported that the development required a formal legal framework for gaming, introduced in 2023, enabling Melco to enter the market4. Lawrence Ho was quoted saying Sri Lanka could be to India what Macau is to China, adding that Colombo is the closest destination to India4. John Keells Group Chairperson Krishan Balendra said the $1.2 billion investment was expected to generate a significant multiplier effect for the Sri Lankan economy4.
On the same conference call, Melco confirmed the closure of the Grand Dragon Casino and three Mocha Clubs in Macau, a move it linked to the Macau SAR's new gaming laws requiring concessionaires to directly own casino properties and phasing out the traditional satellite casino model1. Melco said it plans to move gaming machines from the closed Mocha Clubs to City of Dreams and Studio City in Macau1.
| Melco second quarter 2025 figure | Change |
|---|---|
| Macau property EBITDA | up 35 percent year-over-year, 13 percent quarter-to-quarter1 |
| Group-wide adjusted property EBITDA | approximately $378 million, up 25 percent year-over-year1 |
| Macau property EBITDA margin | 29.2 percent, second highest on record1 |
| Share repurchases in the quarter | approximately $120 million1 |
Melco also reported that City of Dreams Manila faced a "heightened competitive environment," with a strategic review of its Philippine operations ongoing, and that City of Dreams Mediterranean in Cyprus was temporarily impacted by the Iran-Israel war in June1.
What it means for players
City of Dreams Sri Lanka is the first integrated resort in the country and in South Asia, so players in the region now have a Melco-operated casino in Colombo rather than only in Macau, Manila or Cyprus1. The casino and entertainment zone is operated by Melco to what the company describes as international standards and governance, under a 20-year license held by a Melco subsidiary2. The resort is positioned for the premium segment of the Indian customer base, and AGB reported it targets affluent tourists from India, the Middle East, Russia and China1. Entry rules, minimum ages, table limits and which games are available at the property have not been reported in these sources. For comparison of how access and rules work at integrated resorts elsewhere in Asia, see Casinos and Integrated Resorts in Asia: Who Can Enter, What You Can Play and the Rules Inside.
What happens next
Melco said it anticipates a ramp-up period as it effectively creates a new market in the region1. In Macau, the company plans to move gaming machines from the closed Mocha Clubs to its larger City of Dreams and Studio City properties1. A major renovation of the Countdown hotel at City of Dreams Macau is planned, to be rebranded with approximately 150 high-end luxury suites and an average room size in excess of 1,000 square feet, with the project expected to be completed in the third quarter of 20261. Melco's strategic review of its Philippine operations is ongoing1.
Sources4 sources
- Macau market with strong rebound, satellite closures to have low impact - Melco Resorts | Macau Business, macaubusiness.com
- City of Dreams | Melco Resorts & Entertainment, melco-resorts.com
- Melco International Development Limited, melco-group.com
- Melco debuts first South Asian IR, positions Sri Lanka as "India's Macau” | AGB, agbrief.com