City of Dreams Sri Lanka Reports Positive EBITDA for Second Quarter 2026

The hospitality and gaming landscape in Colombo is showing signs of robust growth as City of Dreams Sri Lanka announced its latest financial results. For the second quarter of the 2026/2027 financial year, the integrated resort posted a positive EBITDA of LKR 340 million, equivalent to approximately US$ 1.02 million. This result represents a significant operational improvement compared to the LKR 64 million loss recorded during the same period in the prior year. The shift reflects the steady scaling up of operations across the property's diverse segments.

The performance was largely driven by two key factors: increased activity within the casino and higher occupancy levels across the resort's luxury hotels. Managed by John Keells Holdings (JKH), the resort has benefited from the phased opening of its facilities. The Nuwa luxury hotel and the casino, which began operations in August 2025, are now seeing consistent traffic. Furthermore, the average daily room rates have improved, contributing to the overall revenue growth of the US$ 1.2 billion project.

Numbers and facts

According to the financial statement, the pre-tax loss narrowed substantially to LKR 1.19 billion (US$ 3.5 million), down from LKR 3.39 billion (US$ 10 million) a year earlier. A crucial role in this reduction was played by an exchange gain of LKR 896 million (US$ 2 million) on foreign-currency loans, reversing the exchange loss of LKR 523 million seen in the previous year. However, the property remains in a net loss position before taxes due to substantial ongoing expenses. Depreciation, amortization, and interest costs for the quarter reached LKR 2.43 billion (US$ 7.2 million).

"The group expects the US$ 1.2 billion integrated resort value to maintain growth over the next few quarters." - Krishan Balendra, Chairperson of John Keells Holdings

Background

City of Dreams Sri Lanka is a massive development featuring the 687-room Cinnamon Life hotel and the 113-room Nuwa hotel. The casino and retail spaces are operated under a partnership where Melco Resorts & Entertainment holds a 20-year casino operating license. While the gaming activity has increased, JKH currently recognizes fixed rental income from the operation. A variable rent component exists but is tied to specific performance thresholds that have yet to be met. The project serves as a cornerstone for Sri Lanka's strategy to attract high-spending international tourists.

Why it matters for German players

For German travelers, the resort offers a premier destination for land-based gaming in South Asia. However, for those playing from within Germany, these international developments do not change the strict domestic legal framework. German residents must use online platforms listed on the official GGL whitelist to ensure legal and safe play. These platforms adhere to the GlüStV 2021 regulations, including the 1,000 Euro monthly deposit limit monitored by the LUGAS system and the mandatory 1 Euro per spin limit on virtual slots.

What it means for GGL-licensed casinos

The success of integrated resorts like City of Dreams highlights the global demand for regulated and high-quality gaming experiences. For GGL-licensed operators in Germany, this serves as a reminder that transparency and operational excellence are key to long-term profitability. By strictly following German laws, including integration with the OASIS self-exclusion database, local operators provide a level of security that illegal offshore sites cannot match. As the global industry matures, the focus on sustainable growth and player protection remains a shared priority across both physical and digital markets.

Additional sources: [focusgn.com, focusgn.com]