Lawrence Ho: “What we hope to achieve in Sri Lanka is similar to the model that Macau built with China”

The launch of City of Dreams Sri Lanka this August has introduced a new type of international integrated resort to Colombo. Developed by John Keells Holdings with an investment of $1.2 billion, alongside a 125 million contribution from Melco Resorts & Entertainment, the property represents a landmark collaboration. 

Managed and operated by John Keells in partnership with Melco, the project brings together luxury hotels, world-class dining, event facilities, and an international-standard gaming venue, the first large-scale integrated resort in South Asia.

For Melco, this marks an important move into the region. The company, led by Chairman and CEO Lawrence Ho, sees Sri Lanka as a gateway to the vast Indian market and an emerging tourism destination with significant untapped potential.

In this EXCLUSIVE interview with Yogonet, Ho explains why Melco has been following Sri Lanka for more than a decade, how the resort aims to differentiate itself, the markets it is focusing on, the use of technology, the scale of its training and employment efforts, and the importance of a strong regulatory environment to support foreign investment.

What inspired City of Dreams to choose Sri Lanka as its latest destination, and how does the country's tourism and economic environment align with your business goals?

We began looking at Sri Lanka as far back as 2013. That was when I first came here and met the John Keells Holdings team. They showed us the plans for what they were building. At that time, to be honest, it seemed like an almost impossible dream. The scale and design of City of Dreams Sri Lanka is so iconic, and when you consider the skyline back then, Colombo did not yet have many high-rises, it was a bold vision. It took an extraordinary leap of faith for the John Keells team to invest $1.2 billion of their own capital in a project like this.

For Melco, the timing now makes a lot more sense. Our initial interest back in 2013 was driven by the Indian market. India has now become the most populous country in the world, with 1.4 billion people, and the growth of its middle-income segment over the past decade has been extraordinary. It reminds me very much of what was happening in China about 25 years ago when Macau started to grow into the destination it has become today.

What we see in Sri Lanka is a location that can become to India what Macau is to China. The proximity is unmatched, and this is the closest international destination to that huge market. We also see Colombo as a strategic point between India and the Middle East. With City of Dreams Mediterranean in Cyprus, which we opened two years ago, we have effectively created a pair of destinations on either side of the Middle East, and that market itself has shown us very strong growth.

As of this year, Sri Lanka has set a tourism target of three million visitors. They may reach 2.5 to 3 million, but even that is a small number compared to the potential. When you look at other destinations in Asia that attract far more visitors, many of them are less exotic and offer fewer things to do. Sri Lanka has so much to offer: safaris, extreme sports, cultural heritage, and untouched beaches. I can see that three million visitors can, over time, become five, six, or even seven million.

We are entering at what I would describe as a low base, which gives us long-term growth potential. This fits with Melco’s asset-light strategy for international markets. Our core focus will always be Macau, where we have invested over $10 billion. But internationally, we now look for opportunities where we can invest in a different way. Here, John Keells has already made a $1.2 billion investment in building this incredible property. Melco’s role has been to invest around $125 million to fit out the casino, manage its operations, and operate the high-end five-star hotel.

This allows us to expand into a promising market while keeping our capital requirements lighter. That is important, particularly after COVID. Macau operators faced an exceptionally tough period during the pandemic. Our priority now is to reduce debt and de-leverage. Opportunities like this allow us to enter new markets without taking on the same level of capital intensity, while capturing growth upside over time.

Will your focus be mainly on international tourists, or will there also be an emphasis on local clientele?

Our primary focus is international tourism. India is central to that. What we hope to achieve in Sri Lanka is similar to the model that Macau built with China, to become the primary destination for an enormous, rapidly growing neighboring market.

Currently, Indian tourists make up about 20% of arrivals in Sri Lanka. That number can grow substantially. With improved infrastructure, better air connectivity, and increased flight frequency, we can make this destination far more accessible to Indian travelers.

In addition to India, we also see a very strong market coming from the Middle East. Our experience in Cyprus has shown us how much wealth there is in that region and how travel-oriented people are. We expect that segment to become increasingly important here as well.

China remains another area of potential. Chinese businesses are among the largest foreign investors in Sri Lanka, and there is an established connection between the two countries. We believe Chinese tourists will also find appeal here. So, while the emphasis is clearly on international markets, the mix will include several important sources of visitors – India at the forefront, followed by the Middle East and China.

How will City of Dreams differentiate itself from existing competitors in Sri Lanka? Will this be through gaming experiences, entertainment offerings, customer service, or the overall environment?

It is a combination of all of these factors. The reality is that what has been built here is on a completely different scale from anything that exists in Sri Lanka today. This is South Asia’s first true integrated resort. There is nothing comparable in the region, and it will likely remain the only one of its kind for the foreseeable future. Gaming has been present in Sri Lanka for decades, but most of those casinos are traditional operations, 30 to 40 years old, with no attached hotels.

City of Dreams Sri Lanka is a completely different proposition. It offers 800 hotel rooms, 15 restaurants, five ballrooms, and extensive event facilities. The design, the standards of accommodation, the level of service, the dining options, everything has been built to an international benchmark.

In most of the existing casinos, you will find a small café or limited food offerings. Here, there are 15 restaurants with a wide variety of cuisines. The event space is designed to host international conferences, exhibitions, and entertainment. The experience is fundamentally different, and the quality is something we are proud to bring to this market.

Are there international trends or innovations you have introduced to attract guests looking for something new?

One of the most important lessons we have brought from Macau is the use of technology, particularly smart tables and AI systems. All of our gaming tables in Macau are smart tables now, and we have begun incorporating those same systems here.

Gaming is, at its heart, a data-driven business. We want to make sure that we understand our players and value them appropriately. With technology, we can ensure that we neither over-invest nor under-invest in a customer relationship. Players are sensitive to this, they know how they should be valued. By using data, we can ensure that they are rewarded fairly, and that they see that we appreciate their loyalty.

Lawrence Ho and JKH Chairman Krishan Balendra during the opening ceremony

Guests who are loyal to Melco in Macau, Manila or Cyprus will now find that they can enjoy the same recognition and access when they visit Sri Lanka. For example, for the grand opening here, we invited many players from Macau and Manila.

Beyond gaming, our aim is to showcase what makes each destination unique. When guests visit Sri Lanka, we want them to experience more than just the integrated resort. Sri Lanka offers treasures that destinations like  Macau, Manila, and Cyprus cannot: safaris, natural beauty, and unspoiled beaches. Our goal is to complement the luxurious resort experience by connecting guests with the broader attractions of the country, allowing them to fully embrace the rich culture and unparalleled charm that Sri Lanka has to offer.

How many employment opportunities has City of Dreams generated locally? What training initiatives are in place to maintain service quality and staff retention?

Within Melco’s operations here, the Nuwa Hotel and the City of Dreams casino, we currently employ over 1,400 people. Every one of our employees receives training in responsible gaming. Melco is the only company in the world with RG check, the gold standard of responsible gaming accreditation, in every jurisdiction where we operate. That standard has been implemented here as well.

Beyond that, we focus heavily on service training. Melco operates at the highest end of the luxury spectrum. We have more Forbes five-star in Asia than any other company and more Michelin-starred restaurants in our industry globally. We bring that same standard of training to Sri Lanka, particularly in food and beverage service, guest experience, and operational excellence.

The opening comes as Sri Lanka updates its gaming regulations, including approvals to import gaming machines, new tax structures, and plans for a regulator. How do you view these steps?

We are very supportive of these steps. To attract foreign capital, there must be a strong, credible regulatory framework. A clear set of rules modernizes the industry and builds trust among visitors. In the past, some tourists would say that slot machines in Sri Lanka were rigged. Transparent regulation helps to eliminate that perception.

From our perspective, this is essential. As I mentioned earlier, Melco is the only company with RG Check in every jurisdiction. If City of Dreams Sri Lanka succeeds, and we believe it will, it can serve as a catalyst for more foreign investment in Sri Lanka’s tourism industry.

What measures are in place to ensure compliance with local regulations, uphold responsible gaming, protect customers, and support community and sustainability goals?

Wherever we operate, we adapt to the local environment and respect the culture and regulations of the host country. We work closely with our local partner, John Keells, which has been part of Sri Lanka for more than 150 years. Their guidance is invaluable as we navigate the various agencies, whether it is the Central Bank, the Ministry of Finance, or other regulators.

We view ourselves as guests in this country, which is why we focus on being a responsible corporate citizen and operating in a way that benefits the nation. A successful integrated resort here not only benefits Melco but also creates a story of success for Sri Lanka’s tourism sector and the economy.