Sri Lanka hits 2M tourists in 2025, casino sector sees new hope
Sri Lanka crossed the two-million tourist arrival mark in 2025, a milestone increasingly being viewed through the lens of the country’s expanding casino and gaming ambitions rather than tourism alone.
Officials state that the recovery has generated renewed momentum for land-based casinos in Colombo, which are starting to benefit from increased patronage and higher on-site expenditure as visitor numbers stabilise. The arrival of two French tourists at Bandaranaike International Airport to commemorate the milestone was emblematic of the resurgence of confidence in long-haul travel, while regional travel, especially from India, continues to support visitor volumes.
The resurgence is significant for Sri Lanka’s casino sector, which has historically struggled to gain scale and international relevance. Traditionally, visitors have been drawn to beaches, wildlife safaris, and cultural heritage, with gaming playing a marginal role in the tourism economy. However, that paradigm is now shifting.
India tops the list
India continues to be Sri Lanka’s top source market, consistently bringing visitors to Colombo’s entertainment areas. Meanwhile, arrivals from the UK, Russia, Germany, and China have stayed stable, aiding in what officials call a widespread tourism recovery after the 2022 economic crisis. However, this is changing over time as the government now actively promotes casinos within a broader premium leisure package.
Jaydeep Chakravartty, an iGaming consultant, said rising tourist volumes, particularly from India, are already translating into stronger casino performance. He noted that land-based casinos in Colombo have seen improved table utilisation and higher mass-market play, driven by visitors who treat gaming as one component of a broader leisure experience rather than a standalone attraction.
“Casinos are benefiting from being part of a broader leisure offering rather than standalone attractions”
– Jaydeep Chakravartty, iGaming consultant
“Casinos are benefiting from being embedded within hospitality, dining, and entertainment ecosystems,” Chakravartty said. “Long-term prospects are positive but depend on regulatory stability, sustained tourism growth, and investment in integrated resort-style developments that emphasise experience, hospitality and entertainment alongside gaming,” he added.
Aiming 10% GDP share from gaming
The policy shift has been reinforced by the launch of the $1.2 billion City of Dreams complex in Colombo last year. Developed as a joint venture between John Keells Holdings and Melco Resorts & Entertainment, the project introduces Macau-style integrated resort expertise to South Asia and is widely seen as a landmark moment for Sri Lanka’s gaming industry.
City of Dreams combines casino gaming with hotels, retail, events, and leisure infrastructure, reflecting a deliberate move towards integrated resort development rather than isolated gaming venues. The high-profile opening, featuring Bollywood star Hrithik Roshan, underlined the government’s focus on attracting high-spending regional travellers, particularly from India.
President Anura Kumara Dissanayake has merged regulated casinos into his broader economic revival strategy, presenting gaming as a controlled revenue stream rather than a social hazard. The government has enacted legislation to formally oversee gambling activities, indicating a long-term commitment to regulation and compliance.
Experts suggest that the success of Sri Lanka’s casino initiative will rely on sustained growth in tourism, regulatory stability, and the ability of operators to provide experiences that extend beyond mere gaming. While immediate benefits are apparent, industry analysts caution that integrated resorts must harmonise entertainment, hospitality, and responsible gaming practices to ensure the sector’s sustainability as a key component of the economy.
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