Table of Contents
Melco Resorts & Entertainment generated $6.4m in operating revenue from City of Dreams Sri Lanka in the fourth quarter of 2025, posting an operating loss of $9.1m as the Colombo casino resort worked through its early-stage ramp-up following an August 2025 opening.
Q4 Performance
The Hong Kong-listed operator recorded an adjusted EBITDA of negative $3.9m for the quarter, reflecting the typical performance profile of a newly opened integrated resort still scaling its customer base and operations. The property also covers management services provided to the ultra-luxury Nüwa hotel, which forms part of the development.
Rent for the City of Dreams Sri Lanka integrated resort and casino totalled $1.79m during the quarter. Melco leases the casino space from Waterfront Properties, a subsidiary of Sri Lankan conglomerate John Keells Holdings.
Group-Level Results
At group level, Melco reported profit attributable to the company of $60.6m in Q4 2025, compared with a net loss of $20.3m in the same period a year earlier — a swing that reflects improved performance across the group’s core Macau and Manila operations rather than Sri Lanka’s contribution at this stage.
Property and Investment
City of Dreams Sri Lanka occupies part of a 2.7-hectare site in Colombo and operates 119 gaming tables, covering roulette, baccarat, and blackjack. Melco said it has committed Rs 30.2bn in equity and loan capital to the development, consistent with its stated commitment to invest a minimum of $100m in the capital-light project.
The property structure is notably asset-light by integrated resort standards, with Melco leasing rather than owning the underlying real estate. This reduces the operator’s capital exposure relative to its Macau and Manila developments.
Outlook
Speaking on the company’s earnings call, Chairman and CEO Lawrence Ho said Melco would continue to “progressively ramp up operations” at the Colombo property. Ho pointed to early 2026 trading as reason for cautious optimism, citing what he described as “promising green shoots so far in 2026.”
Sri Lanka represents a new frontier for Asian integrated resort operators. The country’s regulatory framework for casino tourism is still maturing, and City of Dreams Sri Lanka is one of the more prominent international brands to enter the market. Whether the property can reach sustained profitability will depend on its ability to attract regional premium and mass-market visitors as air connectivity and regional tourism flows stabilise.
For Melco, the Sri Lanka results remain a small line item against its core Macau portfolio — but the trajectory over the next two to three quarters will determine whether the group’s confidence in the market is validated by the numbers.
For more on emerging market gaming developments, see UAE gambling legalization: first Gulf casino licence news and Japan IR application window 2027: two casino licences left.
Source: G3 Newswire
