City of Dreams Sri Lanka drives John Keells’ strong Q2 growth
John Keells Holdings PLC (JKH) has credited the full operationalisation of its flagship integrated resort, City of Dreams Sri Lanka (CODSL), for driving a sharp improvement in Group performance in the second quarter of the 2025/26 financial year.
The Group said City of Dreams Sri Lanka came close to breaking even on earnings before interest, tax, depreciation and amortisation (EBITDA) in the quarter ended 30 September 2025. The improvement was driven by higher hotel occupancy, steady visitor numbers at its luxury casino, and increased revenue from events. The result marks a key turning point, as Sri Lanka’s largest private investment moves from its development stage into full-scale operations.
“With the operationalisation of all elements of the integrated resort and based on the booking momentum, we expect to achieve a strong EBITDA uplift, from this base, in the second half of the financial year,” said JKH Chairperson Krishan Balendra.
South Asia’s first integrated resort
The casino forms part of the US$1.2 billion City of Dreams Sri Lanka, the first integrated resort in South Asia and the largest private sector investment in the nation’s history. Developed by John Keells Holdings in partnership with Melco Resorts & Entertainment, the resort opened in August 2025 at Colombo’s Cinnamon Life complex.
The property features two premium hotels — Cinnamon Life @ City of Dreams with 687 rooms and NÜWA @ City of Dreams, a 113-room ultra-luxury hotel alongside a state-of-the-art casino, 17 dining venues, luxury retail spaces, and MICE facilities.
More than 500 Sri Lankan artisans and workers contributed to the property’s construction and interior design, reflecting the country’s cultural heritage and craftsmanship.
Lawrence Ho, Chairman and CEO of Melco Resorts & Entertainment, described Colombo as a strategically positioned gateway for tourism and gaming. “Macau is by far the biggest gaming market in the world. Colombo is the closest destination to India, and an integrated resort like this gives the city a lot of potential,” Ho said.
CODSL ramps up performance
According to JKH, City of Dreams Sri Lanka “achieved close to an EBITDA break-even position for the quarter driven by higher monthly occupancy and conference and banquet revenue contributing to profits, despite the significant one-off costs related to the official launch in August 2025.”
The project has now transitioned out of its capital investment phase, with no further project-related cash outflows expected. Casino operations, which began in August, have been steadily ramping up, with the Group recognising fixed rental income during the quarter and a variable component set to commence once activity levels reach the planned threshold.
Cinnamon Life gaining global attention
The JKH group stated, “The Cinnamon Life hotel continues to be positively received by the market, both locally and internationally. As anticipated, the hotel has experienced a gradual ramp-up in terms of room occupancy, reflecting the typical lead time required for MICE-related bookings and international events to gain momentum following a new hotel launch.”
“Encouragingly, month-on-month improvements in occupancy levels indicate growing market traction and increasing visibility. We expect this positive momentum to accelerate, supported by strong bookings for accommodation and international conferences and events,” it added.
Balendra said Cinnamon Life’s “unique conference and event venues are attracting significant interest for both local and foreign events,” adding that “some international events are now being attracted to Colombo, specifically due to Cinnamon Life’s unparalleled capacity and world-class facilities that set it apart in the country and region.”
Group performance doubles year-on-year
At the Group level, EBITDA more than doubled to Rs. 18.36 billion, an increase of 127 per cent compared to Rs. 8.09 billion recorded a year earlier. Cumulative EBITDA for the first half rose 98 per cent to Rs. 31.33 billion.
Profit before tax climbed 243 per cent to Rs. 7.8 billion, while profit after tax rose 176 per cent to Rs. 4.2 billion. Excluding City of Dreams Sri Lanka and John Keells Capital (JKCG), profit attributable to equity holders increased to Rs. 2.61 billion, compared with Rs. 692 million last year.
“Overall, the Group’s business momentum remains robust, with our large-scale investments beginning to yield results,” said Balendra. “Based on current performance trends, and the typical high seasonality witnessed in some of our key industry groups in the second half of the financial year, Group EBITDA is expected to improve over first-half performance, which would result in a strong growth over the previous financial year.”
Dividend and outlook
Reflecting confidence in sustained earnings, JKH doubled its interim dividend to Rs. 0.10 per share, with an outlay of Rs. 1.77 billion, compared with Rs. 826 million a year earlier. “The increase in dividend declared from Rs. 0.05 to Rs. 0.10 reflects the expectation that the current momentum of performance will sustain or further improve over the second half of the financial year,” Balendra said.
The Group’s net debt-to-equity ratio stood at 32 percent, underscoring what it described as a “strong financial position”. JKH expects this ratio to improve further, supported by higher EBITDA and strengthened cash flows.
City of Dreams Sri Lanka set to lead JKH’s next phase
As City of Dreams Sri Lanka and Cinnamon Life continue to attract international attention, JKH said it expects the integrated resort to become an important contributor to Group earnings and to support Sri Lanka’s growth as a destination for high-end tourism and entertainment.
“With the ramp-up of casino operations and the growing flow of international events, the integrated resort is on course to deliver its full potential in the months ahead,” Balendra said.
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