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Sri Lanka Bets on Luxury Casinos to Drive Tourism & Economic Revival

Aug 27,2025
Travel and Tour World

Sri Lanka is turning to casinos as a key strategy to drive its post-crisis tourism revival. By introducing high-end gaming resorts like the $1.2 billion City of Dreams, the government aims to attract affluent tourists, particularly from India and China. This ambitious move is expected to significantly boost tourism revenue, potentially reaching $5 billion by 2025, up from $3.7 billion in 2024. The casino expansion, coupled with new gambling regulations, is seen as a vital step in diversifying the country’s tourism sector, positioning Sri Lanka as a premier destination for both leisure and luxury travel. Sri Lanka Unveils $1.2 Billion “City of Dreams” Resort, Eyes Record Tourist Arrivals in 2025 Sri Lanka is on the brink of a new era in tourism with the opening of its $1.2 billion “City of Dreams” resort in Colombo. This ambitious integrated resort, marking South Asia’s first venture of its kind, is designed to elevate the country’s appeal to affluent tourists, particularly from India and China, both of which enjoy visa-free entry to Sri Lanka. The government’s hopes rest heavily on the success of this venture, as it seeks to boost the tourism sector and drive economic recovery following the severe financial crises of the last few years.