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Sri Lanka Bets Big on Casinos with City of Dreams Set to Open in 3Q 2025

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By: Staff Writer

February 05, Colombo (LNW): Sri Lanka is making a major push into the casino industry with the upcoming City of Dreams in Colombo, set to be operated by Melco Resorts & Entertainment. 

The highly anticipated gaming and entertainment hub is expected to commence operations in the third quarter of 2025, according to its local partner, John Keells Holdings (JKH).

This project, which marks South Asia’s first integrated resort, aims to capitalize on India’s rising wealth and outbound tourism. 

However, financial analysts at Morgan Stanley caution that while Indian tourists show strong interest in travel and leisure, they historically spend less on gambling compared to Chinese tourists, as seen in markets like Singapore.

A Billion-Dollar Investment

The City of Dreams Sri Lanka represents a significant $1.2 billion investment, making it the largest private sector project in the country’s history. 

JKH, a veteran in Sri Lanka’s hospitality industry through its Cinnamon brand, has been a key player in the development, ensuring a seamless blend of luxury accommodation and entertainment.

Melco, which secured a 20-year casino license in April 2024, will oversee the 180,000-square-foot casino and the 113-room Nuwa ultra-luxury hotel. 

The resort’s commercial spaces have already begun operations, and the full-scale launch—including a shopping mall, entertainment areas, and high-end dining options—is scheduled for mid-2025.

Casino-Driven Revenue & Growth Prospects

Melco’s investment in the project stands at $125 million, which the company considers a “small wager” with strong potential for returns. The casino is projected to generate a gross gaming revenue (GGR) of $200 million to $250 million annually.

 Analysts suggest that 50% of the resort’s EBITDA will likely stem from casino operations. However, to meet profitability expectations, GGR must exceed $300 million, ensuring a post-tax cash flow of $30 million for Melco.

Meanwhile, JKH has committed $900 million to the venture, aiming for a 15% return on invested capital (ROIC) and an annual cash flow of $100 million.

Tourism & Employment Impact

Beyond financial gains, the City of Dreams is expected to be a game-changer for Sri Lanka’s tourism industry. 

The development will create over 20,000 direct and indirect jobs, bolster foreign exchange earnings, and attract high-net-worth visitors. JKH’s 687-room Cinnamon Life hotel, which opened in October 2024, will further enhance the destination’s appeal.

Melco’s Chairman and CEO, Lawrence Ho, has hinted at the possibility of expanding gaming facilities based on market performance. 

As Sri Lanka positions itself as a premier gaming and entertainment hub in South Asia, this project is set to redefine the country’s tourism and leisure sector.

With its grand opening approaching, all eyes are on City of Dreams, as it could be the catalyst for Sri Lanka’s transformation into a top casino tourism destination in the region.

Sri Lanka’s Business Confidence Index Reaches New High amid Economic Optimism

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By: Staff Writer

February 05, Colombo (LNW): The February issue of LMD, a leading business magazine, highlights a significant surge in the Business Confidence Index (BCI) for the fourth consecutive month, reflecting strengthened economic indicators.

According to the latest LMD-PEPPERCUBE report, the BCI climbed by 24 basis points in January, reaching its highest level since 2015.

The index is now approaching its all-time record of 204, which was set in September 2015 following a General Election.

LMD notes that this remarkable rise places the index 75 points above its historical median of 123 and 79 points higher than its 12-month average of 119. For comparison, the BCI was at just 82 basis points in January of the previous year.

The report attributes this surge in business confidence to improvements in Sri Lanka’s foreign exchange reserves, a more stable currency, and increased export activity. These positive economic shifts have bolstered market sentiment, PepperCube Consultants notes in the magazine.

However, LMD cautions that the trajectory of the index will depend heavily on the upcoming Budget 2025, set to be presented in late February.

A spokesperson for the magazine points out that how the budget influences businesses will determine whether the index continues its upward momentum or stabilizes.

There is speculation that the BCI might even surpass its previous record ahead of the budget announcement, depending on how the proposals are received by corporations and whether the government fulfills its election promises.

Another crucial factor influencing economic confidence is Sri Lanka’s adherence to the IMF-backed economic framework.

The sustainability of this approach remains uncertain, raising questions about its long-term impact on businesses.

Additionally, the possibility of local government elections in the near future adds another layer of unpredictability to the economic landscape. LMD predicts that the coming months will likely bring both uncertainty and speculation, though there is potential for the BCI to reach record highs before eventually stabilizing.

At the recent Sri Lanka Economic Summit, organized by the Ceylon Chamber of Commerce (CCC), President Anura Kumara Dissanayake outlined his administration’s plans for large-scale privatization and public sector downsizing.

His government remains committed to attracting increased foreign investment and advancing the Economic Transformation Act (ETA)—a framework initially introduced under former President Ranil Wickremesinghe in alignment with IMF directives.

While some amendments will be made to facilitate smoother implementation, the government’s overall economic strategy remains focused on restructuring state-owned enterprises (SOEs).

President Dissanayake emphasized that barriers to foreign investment will soon be lifted, and approval processes will be streamlined, reducing waiting periods to approximately six months.

The government is also considering the creation of a holding company for multiple SOEs, with the intention of listing shares on the stock market.

However, privatization efforts have historically faced strong resistance from the working class, leading to protests and strikes in recent years.

 Despite opposition, the current administration appears determined to push forward with its economic restructuring plans, arguing that underperforming state-owned enterprises place an excessive financial burden on the government.

As Sri Lanka navigates these economic reforms, the business community remains watchful of how these policies unfold.

The next few months will be critical in shaping investor confidence and determining whether the BCI continues its remarkable ascent or stabilizes in response to evolving economic conditions.

Prof. Neelika Malavige appointed President-Elect of ISID

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February 05, Colombo (LNW): Professor Neelika Malavige has been named the President-Elect of the International Society for Infectious Diseases (ISID), a prestigious position she will officially assume in 2027, the University of Sri Jayawardenapura said.

Each term in the role lasts for two years, and her appointment reflects the high regard in which her work is held globally.

A renowned expert in the field of infectious diseases, Professor Malavige has made invaluable contributions, particularly in the areas of COVID-19 testing, viral sequencing, and the identification of emerging virus strains.

Her pioneering research has significantly advanced the understanding of the molecular epidemiology of SARS-CoV-2, especially in Sri Lanka, where her work played a critical role in tracking and studying the virus’s spread.

In recognition of her exceptional scientific achievements, Professor Malavige was recently named among the top 2% of scientists worldwide, as ranked by Elsevier-Stanford.

This acknowledgment places her in an elite group of researchers, underlining the global impact of her work.

Beyond her research on COVID-19, Professor Malavige has also conducted extensive studies into dengue fever, with a focus on its immunopathogenesis, biomarkers, and immune responses related to protection.

Her contributions to clinical trials and molecular research have been instrumental in advancing the global understanding of dengue, a disease that continues to affect millions around the world.

Fewer drug quality failures in 2024, but stricter controls expected

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February 05, Colombo (LNW): The number of drug quality failures in 2024 was notably lower compared to the previous year, according to the Medical Supplies Division of the Ministry of Health.

A total of 87 drug quality failures were reported in 2024, with the majority of the problematic products being imported from India.

Of the drugs that did not pass quality tests, approximately 47 were sourced from India, while 12 had been produced locally.

The remaining substandard drugs came from various countries, including China, Kenya, Pakistan, Japan, and Bangladesh.

Some of these drugs have been withdrawn from circulation, while others have been withheld or discontinued altogether in an effort to safeguard public health.

The issue of substandard drugs gained widespread attention in 2023, when the country experienced its highest-ever number of quality failures, with 124 incidents reported.

These failures contributed to a number of serious health complications and, in some cases, fatalities, prompting urgent calls for reform within the pharmaceutical supply chain.

As of early 2025, there have already been 13 drug quality failures reported, a figure that has raised concerns despite the relative reduction compared to the previous year.

In light of these ongoing challenges, a senior official from the Ministry of Health has confirmed that steps are being taken to tighten regulations around drug imports.

These measures include enhanced quality control protocols and more frequent testing of pharmaceutical products before they reach the market.

The Ministry is also planning to increase its scrutiny of pharmaceutical suppliers, ensuring that only the highest quality products are allowed into the country.

Major General Chandana Wickramasinghe appointed Chief of Staff of Sri Lanka Army

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February 05, Colombo (LNW): Major General Chandana Wickramasinghe has been appointed as the new Chief of Staff of the Sri Lanka Army, a role he will officially take up on February 09, 2025.

His appointment follows an extensive and distinguished military career, during which he has held several key positions within the Army.

Prior to his new role, Major General Wickramasinghe served as the Deputy Chief of Staff of the Sri Lanka Army.

He also held the position of Director General of General Staff at Army Headquarters, where he played a critical role in overseeing military operations and strategic planning.

Wickramasinghe’s military journey began with his training at the prestigious Indian Military Academy, where he completed the Regular Intake 87 course. He further honed his skills at the Sri Lanka Military Academy, completing Intake 31 before receiving his commission as a Second Lieutenant.

His initial posting was with the Gajaba Regiment, where he served as an Infantry Officer, embarking on a path that would see him rise through the ranks due to his leadership and strategic expertise.

Labour Dept launches new appointment system for EPF registration

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February 05, Colombo (LNW): In a bid to streamline the registration process for the Employees’ Provident Fund (EPF), the Department of Labour has introduced a new programme designed to facilitate smoother registration for employees.

The initiative, called AH Registration, allows individuals to book appointments ahead of time, ensuring a more organised and efficient experience when registering for the EPF.

H. K. K. A. Jayasundara, the Commissioner General of Labour, announced that those wishing to register can now easily schedule an appointment by calling the designated number, 011 2202 201.

He emphasised that this advance booking system would significantly reduce wait times and help applicants complete the registration process without unnecessary delays or complications.

By offering a structured approach to registration, the Department of Labour aims to improve efficiency and accessibility for all individuals seeking to participate in the fund.

Speaker confirms non-receipt of Supreme Court ruling on Local Government Elections Bill

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February 05, Colombo (LNW): In a statement made to Parliament today (05), Speaker Jagath Wickramaratne revealed that he has not yet received the Supreme Court’s determination on the Local Government Elections (Special Provisions) Bill, despite ongoing queries from the Opposition.

The Speaker’s comments followed questions raised by opposition members regarding the delay in presenting the court’s decision to the House.

The Opposition had sought clarification on why the Speaker had not disclosed the ruling, as many had expected it to be made available for discussion during today’s parliamentary session.

In response to these concerns, Leader of the House Bimal Ratnayake provided some reassurance, stating that the local government elections could still be held by the scheduled date of April 24, 2025, regardless of the court’s determination.

Ratnayake further indicated that the Bill would be brought up for debate in Parliament on February 18 and 19, offering lawmakers the opportunity to discuss and scrutinise its provisions.

Protest over Attorney General’s decision in Lasantha Wickrematunge murder case

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February 05, Colombo (LNW): The Young Journalists Association has called for a protest in response to the recent recommendation made by the Attorney General to release three individuals implicated in the high-profile case concerning the murder of Lasantha Wickrematunge, the former editor of The Sunday Leader.

The demonstration is set to take place tomorrow (Feb 06) at 12.00 pm in front of the Attorney General’s Department in Colombo.

Protesters will gather to express their strong objections to the Attorney General’s decision, which they believe shields those responsible for the killing of the well-known journalist.

The association has stated that the protest is aimed at demanding the resignation of the Attorney General, accusing him of protecting criminals rather than upholding justice.

Participants will also be calling for transparency regarding the criteria and legal basis behind the decision to release the suspects, whose identities have raised public concern.

The Young Journalists Association has extended an invitation to all those who stand for justice and accountability to join the protest, stressing the importance of public mobilisation in the pursuit of truth and justice in the case.

Govt to announce certified paddy price reflecting full production costs

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February 05, Colombo (LNW): The Ministry of Agriculture, Livestock, Land, and Irrigation is set to unveil the long-awaited certified price for paddy today, with officials emphasising that this price will be calculated based on the complete cost of production.

Deputy Minister Namal Karunaratne confirmed that the forthcoming price announcement will take into account the full expenses incurred by farmers in cultivating paddy.

He acknowledged that the long-standing demand from Sri Lanka’s farming community has been for a price that reflects at least a 30 per cent profit margin above production costs for every kilogramme of paddy harvested.

Unfortunately, this target has often remained an elusive goal.

Karunaratne explained that, despite the challenges faced in the past, the government has now taken concrete steps to meet this expectation. The authorities will ensure that the certified price will include the desired 30 per cent margin, aligning with what farmers have long been advocating for.

In addition to the price adjustment, the Deputy Minister highlighted that the Treasury has allocated a substantial Rs. 5 billion to facilitate the purchase of paddy stocks directly from local farmers.

This financial commitment aims to ease the burden on farmers, provide them with a fair return for their hard work, and support the local agricultural economy.

Acting IGP warns of disciplinary and legal action against officers rejecting complaints

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February 05, Colombo (LNW): Acting Inspector General of Police (IGP) Priyantha Weerasooriya has issued a strong warning to police officers and station commanders, stating that they will face both disciplinary and legal action if they refuse to accept complaints lodged by the public at police stations.

In a directive released recently, Acting IGP Weerasooriya made it clear that officers who reject complaints or fail to register them for any reason will be held accountable.

He emphasised that under the Police Ordinance, these officers could face legal repercussions in addition to the internal disciplinary measures imposed by the police department.

The Acting IGP’s circular follows numerous reports, both written and verbal, suggesting that some police officers are turning away individuals who come forward with complaints.

In many cases, these rejections have been explained with various excuses, undermining the public’s trust in the police force.

Weerasooriya stressed that such actions were unacceptable, particularly when the core duty of police officers is to serve the public by ensuring all complaints are recorded and investigated appropriately.

The circular also reminded officers that their role within the police force is not just to maintain law and order, but to respond to the concerns of the community with professionalism and integrity.

He emphasised that the failure to take action when a complaint is made not only breaches the law but also erodes public confidence in the police service.