The casino at City of Dreams Sri Lanka, in that country’s capital Colombo, is likely to be open in the “third quarter of calendar year 2025”.
That is according to comment issued this week from Krishan Balendra, chairperson of John Keells Holdings Plc.
The Sri Lanka real estate developer is the partner of casino operator Melco Resorts & Entertainment Ltd for the US$1-billion City of Dreams Sri Lanka scheme (pictured). The partnership had been announced in April, and is based on infrastructure started before the Melco brand’s involvement.
Banking group Morgan Stanley said in a July memo after meetings with John Keells’ management, that Melco Resorts would get circa 50 percent of casino EBITDA (earnings before interest, taxation, depreciation and amortisation) for the Sri Lanka site.
Melco Resorts has previously mentioned it would spend US$125 million as its contribution toward the resort.
John Keells’ Mr Balendra reiterated in his firm’s financial third-quarter report for the period to December 31, issued this week, that a 687-key hotel branded Cinnamon Life, along with restaurants and banquet facilities, had started operating on October 15 last year.
He added: “Fit-out works relating to the remainder of the project comprising of the 113-key Nuwa hotel and gaming operations are progressing well and are expected to be operational along with the retail mall in the third quarter of calendar year 2025.”
Mr Balendra’s comment offers a more specific time frame than the “second half of 2025” mentioned for the casino and the Melco-branded Nuwa hotel, by Lawrence Ho Yau Lung, chairman and chief executive of Melco Resorts, during the latter’s third-quarter earnings call in November.
Mr Balendra noted in his comments for his own firm’s latest quarterly report: “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 John Keells chairperson stated that the October launch of the Cinnamon Life hotel at the site marked a “culmination of events” for the group’s” iconic integrated resort”, a project which Mr Balendra said had been “under construction over the last decade”, a time before Melco’s involvement.
He added regarding Cinnamon Life: “All the food and beverage offerings, including the unique outdoor locations and wellness centre, were progressively launched over the last few months with all outlets and spaces at the hotel now operational as of the reporting date.”
Mr Balendra said: “I am pleased to note that we have continued to receive positive feedback from our customers keeping with expectations of the brand positioning of the integrated resort.
“Demand and bookings for the various event spaces at the property have exceeded expectations.”
He addeD: “As expected, the occupancy for the hotel will have a slow ramp up till demand for conferences and foreign events gather momentum.”
