City of Dreams Sri Lanka Phase II to open in Q3

Phase II includes a casino and the 113-key Nuwa hotel.

Sri Lanka.- Krishan Balendra, chairperson of John Keells Holdings (JKH), has said Phase II of City of Dreams Sri Lanka is expected to open in the third quarter of 2025. Phase II includes the 113-key Nuwa Hotel and gaming operations.

The casino will be operated by Melco Resorts & Entertainment, partner for the US$1bn integrated resort (IR) located in central Colombo. Phase I opened in October with 687 rooms, restaurants and multiple entertainment venues, including ballrooms and event and conference facilities with a capacity of over 5,000. There is potential for expansion of the gaming facilities, subject to performance and market conditions.

Balendra said: “City of Dreams Sri Lanka is an iconic project that was conceived over a decade ago; a one-of-a-kind venture that will undoubtedly convert Colombo into a preferred destination for leisure and entertainment in the region, offering best-in-class lifestyle, shopping and entertainment spaces.

“The Group is confident that the convergence of all elements in the launch of City of Dreams Sri Lanka will unlock its full potential as a transformative development in South Asia and be a catalyst in creating tourism demand, foreign exchange earnings for Sri Lanka and generating employment. The City of Dreams Sri Lanka project, once all components are in full operations, is expected to generate over 20,000 direct and indirect employment and community engagement opportunities.”

Morgan Stanley previously said that Melco would pay John Keells 50-55 per cent of casino earnings before interest taxes depreciation and amortisation (EBITDA). It would also pay 30-40 per cent income tax on its share. Based on a 50 per cent EBITDA share and 40 per cent tax, analysts suggested that Melco Resorts could receive US$30m in cash flow.

See also: Melco opens an office in Thailand