Melco Resorts secures casino licence for new $1 billion integrated resort in Sri Lanka

New York-listed casino operator Melco Resorts & Entertainment has been granted a twenty-year casino licence for a new US$1 billion integrated resort in Sri Lanka.

Melco has partnered with John Keells Holdings, the largest listed conglomerate on the Colombo Stock Exchange, for the development in central Colombo, which has been rebranded as City of Dreams Sri Lanka, having previously been known as Cinnamon Life Integrated Resort.

City of Dreams Sri Lanka will be the first integrated resort in Sri Lanka and South Asia and will feature a casino, 800 hotel rooms, retail, food and beverage outlets, and conference and exhibition facilities.

Melco will operate the casino gaming area through a wholly-owned local subsidiary that has been awarded a twenty-year casino license by the Sri Lankan Government.

The estimated initial investment in the casino is expected to be approximately US$125 million.

The non-gaming facilities of the integrated resort, including the 687 key Cinnamon Life hotel managed by John Keells, is in the final stages of completion and is expected to commence operations in the third quarter of 2024, while casino operations are expected to commence in mid-2025.

There is also the potential for further expansion of the gaming facilities, subject to performance and market conditions.

“We are thrilled to be part of this landmark development in Sri Lanka and to be in partnership with John Keells,” said Melco chairman and CEO Lawrence Ho. “We believe Sri Lanka has immense potential and this opportunity complements our existing portfolio of properties.

“Furthermore, City of Dreams Sri Lanka is expected to serve as a catalyst for stimulating tourism demand and promoting economic growth in Sri Lanka, drawing inspiration from the successful examples set by similar integrated resorts in other jurisdictions. We will continue to work closely with our esteemed partners and the Sri Lankan Government to ensure the success of this venture, and we expect to make a significant and positive impact on the local community and economy.”

The company has also released its results for the first quarter of 2024, with revenue up 44 per cent year-on-year.

Shares in Melco Resorts & Entertainment Ltd (NASDAQ:MLCO) closed 0.76 per cent higher at $6.59 per share in New York Wednesday and were up 1.52 per cent in pre-market at $6.69 per share.