As Sri Lanka emerges from economic turbulence and works to rebuild its global image, City of Dreams Sri Lanka stands out as a landmark project with profound implications for the country’s tourism and economic future. Located in Colombo, this integrated resort is a joint venture between local conglomerate John Keells Holdings (JKH) and Macau‐based Melco Resorts & Entertainment, with a total investment of around USD 1.2 billion.
A New Kind of Destination
What makes City of Dreams especially noteworthy is its scope: it is Sri Lanka’s—and in many respects South Asia’s—first fully integrated resort. It combines hospitality (hotels and spas), upscale retail, entertainment (including a casino), food & beverage, cultural shows, and MICE (meetings, incentives, conferences, exhibitions) infrastructure all in one location.
Given Sri Lanka’s assets—beaches, heritage sites like Sigiriya and Kandy, wildlife, tea country—this resort can serve as a strong anchor for attracting higher-spending tourists and lengthening stays. It also positions Colombo more assertively as a regional hub for business, luxury travel, and entertainment.
Tourism & Economic Impacts
The scale of the City of Dreams development is underscored by several significant milestones. The resort offers more than 800 rooms and suites, comprising 687 under the Cinnamon Life brand and 113 ultra-luxury NUWA accommodations situated on the top five floors. Adding to its appeal, Melco’s locally incorporated subsidiary has been awarded a 20-year gaming license, with an investment of approximately USD 125 million earmarked for the casino and gaming facilities.
NUWA: The Ultra-Luxury Jewel
The NUWA hotel brand is the luxury flagship of Melco, already present in high-end properties in Macau and the Philippines. For discerning travellers, NUWA’s launch represents an opportunity to enjoy exclusive luxury, in the form of penthouses, high-end suites, bespoke service, fine dining, wellness/spa, and immersive experiences not commonly found elsewhere in Sri Lanka. Its presence also helps to elevate the overall profile of Sri Lanka’s luxury hotel segment and attract more affluent market segments, including honeymooners, high-net-worth individuals, and MICE clients.
Challenges & Opportunities
Of course, such ambitions do not come without risks. Regulatory oversight (especially with gaming), competition from other destinations, maintaining ultra-luxury standards (staffing, service, supply chains), and ensuring sustainable development (environmentally and socially) are all essential considerations. The government’s move to establish clearer gambling regulations and introduce a Gambling Regulatory Authority is part of this challenge.
Yet the opportunities are rich. With Sri Lanka aiming for ~3 million tourist arrivals in 2025 (up from ~2 million in the recent past) and looking to increase tourism’s share of GDP, City of Dreams + NUWA could be a central pillar of the recovery strategy.
In sum, the launch of City of Dreams Sri Lanka, anchored by the ultra-luxury NUWA hotel, is more than just a luxury development—it is a signal of intent. It shows Sri Lanka aiming to move up the value chain in tourism: capturing more spend per visitor, hosting international events, strengthening its global brand, and integrating culture, luxury, entertainment, and business in new ways. If managed well, this could redefine the country’s tourism narrative in the decades to come.
