What can change the image of an entire country faster: a technological leap or billion-dollar investments in tourism? In August 2024, Colombo is preparing for an event that could become a turning point for Sri Lanka’s tourism industry.
The launch of the integrated resort City of Dreams is not just the opening of a luxurious complex, but an ambitious attempt to completely redefine the country’s image on the international stage. To what extent can such a project truly change the structure of tourism and turn the capital into a new entertainment hub of South Asia?
Opening of City of Dreams – The Start of a New Era
On August 2, 2024, the official opening of City of Dreams—the country’s first integrated resort of this scale—will take place. The project is being implemented through a partnership between Sri Lankan holding John Keells Holdings (JKH) and the global casino operator Melco Resorts & Entertainment. Even at the launch stage, it has already been called the largest private sector investment in the history of Sri Lanka’s tourism industry.
The leaders of both companies openly emphasize: the new resort will not only change the landscape of Colombo but can also elevate the entire country to the top tourist destinations. According to JKH’s head Krishan Balendra (quoted by The Sunday Times), City of Dreams represents more than a decade-long ambition and will be a game-changer for the entire region.
Focusing on the Loyalty of Indian Tourists
A key feature of the strategy is its focus on Indian guests. In 2024, the number of tourists from India reached 416,974, which is 37.7% more than the previous year (according to the Sri Lanka Tourism Development Authority). India already holds the top position in terms of visits to Sri Lanka among all foreign markets. JKH’s management considers it a realistic goal to reach 1 million Indian tourists in the coming years.
The choice is clear: the Indian outbound tourism market is showing steady growth, and geographical and cultural proximity makes Sri Lanka one of the most attractive destinations for Indians of middle and high income. Can competitors from other South Asian countries seize the initiative by offering similar products, or is focusing on Indian guests the only viable path to success for Sri Lanka?
Investments and Infrastructure: What the Project Includes
The total investment in City of Dreams exceeds $1.2 billion, with Melco investing $125 million in the creation and launch of the casino and the Nüwa hotel. The complex includes the 113-room Nüwa hotel designed for high-end guests, a large shopping mall, a spacious casino covering 180,000 square feet, as well as the Cinnamon Life hotel with 687 rooms, which has been operating since October 2024.
Special attention is paid to the level of service and infrastructure: Nüwa guests have access to private elevators, a rooftop pool, a luxurious spa center, and a private check-in desk. Direct access to the casino ensures maximum convenience for guests seeking a high standard of leisure. Modeled after Melco’s flagship projects in Macau, Manila, and Cyprus, the Sri Lankan complex is aimed at establishing a unique standard of luxury, combining business, entertainment, and comfort.
Legislative Changes and Taxes: New Rules of the Game
To support such large-scale investments, in 2024 the country adopted the Gambling Regulatory Authority Bill, which introduces a unified system of control over all forms of gambling: from casinos and online platforms to organized junket tours for players. The new state body includes representatives from the Ministry of Finance, the tax service, Financial Intelligence, and the police, as well as independent experts.
At the same time, new tax measures were introduced: from April 2025, the corporate tax rate for gambling companies will increase from 40% to 45%. The windfall tax on super profits (above 1 million LKR) will rise from 15% to 18%. The entrance fee to the casino for guests will be $100. Will this increased fiscal burden reduce the interest of investors and tourists, or is the market able to absorb such tightening of conditions?
Impact on the Economy and Labor Market
JKH expects an investment return rate of 15% in the medium term. According to company data, the complex will create thousands of jobs, both direct (in hotels, casinos, services) and indirect—for small businesses and suppliers. The influx of foreign tourists will increase budget revenues, and the multiplier effect of the complex’s operation will provide momentum for the growth of related industries: transport, trade, and event organization.
Industry analysts note that similar projects in Asia (for example, resorts in Singapore and Macau) have led to significant local economic growth and the stimulation of innovation in services. The impact of City of Dreams on the local labor market may become a subject of research in the coming years.
Can Colombo Become a New Tourism Center?
Experts constantly compare City of Dreams with successful integrated resorts in Asia, where a combination of entertainment, hospitality, shopping, and MICE tourism (Meetings, Incentives, Conferences, Exhibitions) has led to global success. Currently, the island nation is not among the world’s gambling centers. Whether Sri Lanka will find its own formula and be able to repeat the path of Macau or Manila remains an open question for the market and analysts.
The key to competitiveness is an integrated approach: in addition to casinos and elite service, economic development is influenced by the growth of business and event tourism, the expansion of transport infrastructure, and the hosting of international events.
Why Integrated Resorts Are a Trend
In global practice, integrated resorts are multifunctional complexes combining hotels, casinos, restaurants, shopping galleries, and facilities for business events.
This approach allows regions with land-based casinos to succeed in the era of active competition with iGaming. It is no secret that more and more people prefer to gamble online. Data from the largest online casinos confirm a steady growth in audience. Experts in their reports highlight brands such as Mostbet, PinUp, and Parimatch. According to the data presented here, the online casino Melbet is also actively competing with market leaders in many regions of the world, and Southeast Asia is no exception. Therefore, casino resorts strive to attract tourists not only with gambling.
This format has proven its effectiveness in Macau, Singapore, and Las Vegas, where the influx of tourists became a driver of strong economic growth. In Sri Lanka, such a concept is only beginning to be implemented but is already attracting interest from investors and the government.
For clarity of terminology: MICE (Meetings, Incentives, Conferences, Exhibitions) is a collective term for business tourism, which contributes to generating new visitor flows and increasing the prestige of a resort destination. An integrated resort is infrastructure designed for a wide range of entertainment and services for various categories of guests.
Real-Life Stories and Opinions
Project leaders openly express their confidence in the country’s potential: as Krishan Balendra notes, the launch of the complex will be “a vivid testament to our confidence in the future of Sri Lanka and the aspiration for national development through large-scale investment” (The Sunday Times). The first guests of City of Dreams include not only tourists from India but also business travelers and representatives of the entertainment industry, who are already assessing the level of service and infrastructure as meeting leading world standards.
Economists see long-term benefits for the economy but emphasize that such projects require constant managerial flexibility and consideration of geopolitical and market changes. The real stories of the first visitors and feedback from business partners are becoming part of a new chapter in the development of Sri Lanka’s tourism.
The transition from past constraints to vast opportunities offered by integrated resorts is shaping a new image for the country, opening the doors for Sri Lanka to join the elite of global tourism.
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