The City of Dreams Sri Lanka casino resort recorded earnings before interest, taxation, depreciation and amortisation (EBITDA) of nearly LKR1.44 billion (US$4.6 million) for the three months to December 31. That is according to information published this week by John Keells Group Plc, the real-estate developer partner in the complex.
Global casino operator Melco Resorts & Entertainment Ltd was awarded a licence to run the gaming venue at City of Dreams Sri Lanka, valid for a “term of 20 years effective from 1 April 2024”, according to previous information from the casino group.
City of Dreams Sri Lanka (pictured), in the capital Colombo, has been described as a US$1.2-billion venture. The complex had an official opening in August last year.
Melco Resorts also runs the 113-room Nüwa-branded hotel at the property. A 687-room hotel branded Cinnamon Life has been open at the complex since the autumn of 2024.
“The quarter under review marked the first full period in which all components of the group’s flagship integrated resort were operational, following the opening of the luxury‑standard casino, the ultra‑high‑end 113‑room Nüwa hotel, and the first phase of the premium shopping mall,” said Krishan Balendra, chairperson of John Keells, in a message included in the earnings report.
He added: “City of Dreams Sri Lanka recorded positive EBITDA for the first time since commencing operations, with EBITDA of LKR1.43 billion, which includes fair value gains on investment property amounting to LKR606 million.”
EBITDA for the prior-year period was negative to the tune of LKR1.57 billion, and did not include fair value gains on investment property, according to the quarterly report.
The complex recorded a loss after tax of just under LKR2.63 billion in the October to December period, an improvement on the LKR2.80-billion loss a year earlier.
“The casino continues to record a steadily improving performance. The group recognised fixed rental income from the casino for a full quarter, while the variable rental component will come into play once the operations reach a certain level of performance,” noted Mr Balendra.
The executive also said that the group’s own Cinnamon Life hotel “continues to be positively received by the market, both locally and internationally”.
“Month-on-month improvements in occupancy levels indicate growing market traction and increasing awareness and visibility in key markets,” he stated. “We expect this positive momentum to accelerate, supported by strong bookings for accommodation, international conferences and events.”
John Keells reported group-wide EBITDA of LKR21.46 billion for the third quarter of its financial year ending March 31 this year, up 62.7 percent from a year earlier.
Profit attributable to shareholders of the parent stood at LKR6.48 billion in the three months to December 31, up from LKR2.85 billion a year ago.
Sri Lanka’s government affirmed earlier this month that increases to the country’s betting and gaming levy and to casino entry fees came into force on January 1. The casino entrance levy applicable to locals has been increased from US$50 to US$100.” That was after a Gambling Regulatory Authority Act took effect on December 1.
