Melco Secures 20-Year License for $1 Billion Casino in Sri Lanka

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Hong Kong-listed Melco International Development Ltd has secured a 20-year license to operate a casino in Sri Lanka. The company, which owns Melco Resorts & Entertainment Ltd, is set to launch its gaming venue in the third quarter of 2025.

According to Gambling News, Melco’s gaming license is effective from April 1, 2024, and will remain valid until April 1, 2044. The casino will be located at the City of Dreams Sri Lanka, an integrated resort in Colombo. The project is being developed in partnership with John Keells Holdings Plc, a major Sri Lankan real estate developer.

$1 Billion Investment and Expansion Strategy

The City of Dreams Sri Lanka project has a total investment of $1 billion. Melco has contributed $125 million to ensure the casino meets international standards. The Sri Lankan government granted the gaming license to Bluehaven Services (Private) Ltd, a wholly owned subsidiary of Melco Resorts.

As part of the deal, Melco recorded an intangible asset of LKR5.00 billion ($16.9 million) for the casino license fee. The company stated that this fee “will be amortized on a straight-line basis upon the commencement date of the operation of the Sri Lanka casino to the date of the expiry of the Sri Lanka licence.”

Features of City of Dreams Sri Lanka

The resort will feature 800 hotel rooms, dining options, conference spaces, and entertainment facilities. Melco will manage the top five floors under its Nuwa brand, which will offer 113 luxury rooms. The remaining 687 rooms will be operated by a separate entity.

Melco expects the casino project to contribute to Sri Lanka’s economy by boosting tourism and creating job opportunities. The company believes that the development will align with its global expansion strategy. It has adopted an “asset-light approach” to growth, focusing on new opportunities in emerging gaming markets.

Future Plans for Melco

Melco’s CEO, Lawrence Ho Yau Lung, has emphasized the company’s commitment to expanding its international presence. In February 2025, he stated that Melco would “be asset light where we can, capitalize on our investments, and reallocate our resources.”

The Sri Lankan project is part of Melco’s broader strategy to enhance its global footprint. The company is also exploring potential alternatives for its City of Dreams Manila casino in the Philippines.

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