Melco Resorts and John Keells Holdings Unveil Phase 1 of Sri Lanka’s New Resort Complex

On October 15, 2023, the highly anticipated Cinnamon Life at City of Dreams Sri Lanka opened its doors in Colombo, marking the unveiling of Phase 1 in a grand vision for a $1.2 billion integrated resort (IR). This landmark project, a collaboration between Melco Resorts International and John Keells Holdings (JKH), aims to transform Sri Lanka’s tourism landscape and position the country as a premier destination for travelers and investors alike.

The Vision Behind Cinnamon Life

The newly opened 687-room property is not just a hotel; it is a symbol of a larger commitment to fostering growth in Sri Lanka’s tourism sector. Melco, a powerhouse in the global gaming and hospitality industry, previously established other City of Dreams resorts in Macau, the Philippines, and Cyprus, each known for their luxurious services and amenities. The Sri Lankan IR seeks to replicate this success by providing a comprehensive experience for guests that combines accommodation, leisure, dining, and conferencing facilities.

Conference Facilities: A Hub for Business

One of the standout features of the Cinnamon Life complex is its conference center, hailed as the largest in Colombo, capable of accommodating up to 5,000 visitors at once. This sophisticated facility is set to attract international conferences and events, helping to position Sri Lanka as a hub for business and tourism. Such amenities not only appeal to corporate clients but also promise additional footfall in the surrounding area, further benefiting local businesses.

Future Developments: A Promising Phase 2

While Phase 1 has set a strong foundation, Phase 2 is poised to take the project to greater heights with the introduction of a Melco-run casino, an expansive shopping district, and an exclusive Nuwa-branded hotel. Slated for a mid-2025 opening, this next phase aims to deliver a myriad of non-gaming amenities, further enriching the guest experience.

A “Small Wager” with Big Returns

In April, Melco secured a 20-year gaming license from the Sri Lankan government, marking a significant milestone in this partnership. Under the terms of the agreement, Melco will oversee the design and operation of the gaming space, estimated to cost around $125 million. Lawrence Ho, the chairman and CEO of Melco, referred to this investment as a “small wager” with promising projected returns. He anticipates that the casino alone could generate gross gaming revenue (GGR) of between $200 million and $250 million annually, which would further bolster the local economy.

Ho is optimistic that the City of Dreams Sri Lanka will stimulate tourism and positively impact local commerce. He stated, “We expect to make a significant and positive impact on the local community and economy,” highlighting the potential to enhance Sri Lanka’s profile as a tourist destination.

Creating a Transformative Development

The ambition behind the Cinnamon Life project reflects a larger strategy of creating an iconic development that can serve as a driving force for Sri Lanka’s tourism sector. JKH’s chairman and CEO, Krishan Balendra, emphasized this vision, suggesting that the IR could be a catalyst for foreign exchange earnings and job creation in the region. He drew parallels to Singapore’s success stories, hinting that the impact of City of Dreams could mirror that of Marina Bay Sands and Resorts World Sentosa, which have proven to be monumental for tourism in Singapore.

"The opening of those integrated resorts in 2010 resulted in an immediate surge in tourist arrivals to Singapore," Balendra stated, reinforcing the idea that similar outcomes could be expected for Sri Lanka.

Conclusion: A New Era for Sri Lanka’s Tourism

With the launch of Phase 1 of Cinnamon Life, Melco Resorts and John Keells Holdings are not just opening a hotel; they are initiating a transformative journey for Sri Lanka’s tourism industry. By investing in world-class facilities and amenities, they are setting the stage for a flourishing tourism sector, creating new jobs, and attracting international visitors.

As Phase 2 approaches, the excitement surrounding this project continues to grow, promising to offer Sri Lankans and visitors alike a high-end destination that blends luxury, entertainment, and business seamlessly. The City of Dreams Sri Lanka is more than a resort; it’s a hopeful glimpse into a thriving future for the nation’s economy.