Sri Lanka Port City Casino Project Withdrawn

A proposed casino development at Sri Lanka’s Colombo Port City will not proceed after the applicant withdrew during due diligence, according to the Colombo Port City Economic Commission (CPCEC). The project was one of five developments to exit the scheme for various reasons.

CPCEC Director General Revan Wickramasuriya disclosed the withdrawals to a parliamentary committee. Other departing projects included a private hospital and an educational institute.

Media Report Names Universal Entertainment as Potential Applicant

Sri Lankan media outlet Economy Next identified Japan-based Universal Entertainment Corp. as the party interested in the casino project. Universal Entertainment is the parent company of Okada Manila in the Philippines.

According to Economy Next, the company pulled out after conducting due diligence on a 10-hectare plot designated for an integrated resort.

However, IAG reported that it had been unable to find earlier references confirming Universal Entertainment’s interest in developing a casino in Sri Lanka. The company’s alleged involvement therefore remains unverified by IAG.

While Wickramasuriya confirmed that an applicant had assessed the integrated resort site before withdrawing, the identification of that applicant comes from Economy Next’s reporting rather than the commission’s public account.

Colombo Port City Seeks International Investment

Colombo Port City is a 269-hectare reclaimed-land development located beside Colombo, Sri Lanka’s commercial centre. The project is being developed by CHEC Port City Colombo, a subsidiary of China Harbour Engineering Company Limited.

Its broader objective is to attract international investment across financial services, tourism, hospitality and real estate, with plans to establish an international business hub combining commercial operations with residential and lifestyle facilities.

The CPCEC oversees the development under legislation introduced in 2021, which established a special economic zone framework for Port City.

Integrated Resort Included in Port City Master Plan

The development’s master plan incorporates commercial, residential and recreational areas. An International Island precinct has been designated for an integrated resort and entertainment facilities, including the site considered for the proposed casino.

Wickramasuriya said the applicant assessed the designated plot before deciding not to continue with the project.

The site is also located near Melco’s City of Dreams Sri Lanka, which opened at the Cinnamon Life resort in 2025. That property is separate from the proposed casino development at Colombo Port City.

Leased Land Parcels Attract $1.12 Billion in Investment

Despite the withdrawal of five projects, investment across nine leased land parcels has reached $1.12 billion, according to Economy Next.

Completed lease agreements cover two residential plots, two mixed-use plots, as well as marina and hotel plots. The agreements relate to several parts of the wider development rather than exclusively to casino or tourism projects.

Colombo Port City comprises 118 land parcels. CHEC Port City Colombo will market 48 parcels, while the government is responsible for selling 28 and retaining the common areas.

These arrangements form part of the development’s wider strategy to attract investment across its designated precincts, despite the departure of several proposed projects.