City of Dreams Colombo to transform Sri Lanka’s tourism landscape: JKH Chief

• Says gaming was central component from the outset, made possible only after Sri Lanka introduced formal regulation in 2023
• Asserts partnering with globally regulated Melco boosts Sri Lanka’s credibility in integrated resort space
• Expresses confidence in long-term returns and diversified revenue streams
• Sees strong bookings across Cinnamon Hotels portfolio ahead of winter season

John Keells Holdings (JKH) Chairperson Krishan Balendra on Saturday expressed confidence that the long-anticipated launch of City of Dreams Colombo will catalyse a new era for Sri Lanka’s tourism and hospitality sectors, positioning Colombo as a premier regional destination.

Speaking at a press conference held at the newly opened integrated resort, Balendra noted that the project had been over a decade in the making, first conceptualised in 2010-2011 as Sri Lanka emerged from its decades-long civil conflict. “We saw the end of the war as a turning point and recognised the opportunity to tap into India’s rapidly growing outbound tourism market and beyond,” he said.

He pointed to Sri Lanka’s strategic location within four hours of key regional hubs, including India, China, Southeast Asia, and the Middle East, calling it a natural base for tourism-led development. 

“We asked ourselves: what kind of destination could we build to seize that opportunity? The answer was an integrated resort, a proven format that combines luxury hotels, apartments, food and beverage (F&B), entertainment, and gaming under one roof,” he said.

Citing Singapore’s 2010 launch of Marina Bay Sands and Resorts World Sentosa as transformative milestones, Balendra said City of Dreams Colombo, developed in partnership with global gaming and hospitality giant Melco Resorts & Entertainment, could have a similar effect on Colombo. “It’s about creating a tourism magnet that draws high-value visitors, boosts the urban economy and elevates Colombo’s international brand,” he added.

A key part of the vision, Balendra acknowledged, was the inclusion of gaming. But he stressed that bringing in a global operator like Melco was only possible after Sri Lanka established a robust regulatory framework — a process that took nearly a decade. “Back in 2015, there was no gaming regulation in Sri Lanka. We pushed for a proper licencing framework to align with global standards. That became a reality in 2023, and Melco received its formal licence in 2024.”

He noted that the presence of an operator governed by ‘gold-standard regulations across multiple jurisdictions’ would elevate Sri Lanka’s reputation, making it a credible player in the global integrated resort space.

On the financial front, Balendra declined to offer earnings guidance but expressed confidence in the project’s long-term returns. “This is a major capital investment for our Group. It has been rigorously assessed against our return-on-capital benchmarks, and we are confident it will perform strongly,” he said. 

He added that revenue would come from multiple streams, such as hotel operations, F&B, retail, office space, apartments, event hosting, and gaming revenue shares.

With all components of the mixed-use complex now fully operational, early signs are promising. “Each month has outperformed the previous one. With winter approaching and all facilities now live, we expect occupancy to rise steadily,” he said.

He said bookings across the broader Cinnamon Hotels & Resorts portfolio, which includes three hotels in Colombo and eight resorts around the island, are also trending well. “Bookings as of early August are significantly ahead of last year’s levels,” Balendra said, pointing to a strong outlook for the upcoming winter season.