Universal Entertainment's Colombo Casino Resort Plan Just Hit a Major Snag

Dr. Annelies De Vos · 2026-10-16

Universal Entertainment Colombo has officially pulled out of a proposed integrated resort development at Sri Lanka's Colombo Port City. The company had been eyeing a 10-hectare site (about 25 acres) for a casino resort, but after conducting due diligence, they decided to walk away. The news came from CPCEC Director General Revan Wickramasuriya, who shared it with parliament's Committee on Public Finance. In his words, "That was another applicant that considered the integrated resort plot… They came in; they, again, withdrew during their due diligence." So what does this mean for the project? Let's break it down. ### What Was the Colombo Port City Project? Colombo Port City is a massive urban development project in Sri Lanka's capital, built on reclaimed land right next to the city's central business district. It's designed to be a hub for finance, tourism, and entertainment, with a special economic zone status. The integrated resort was supposed to be a key part of that vision, bringing in foreign investment and creating jobs. Universal Entertainment, a Japanese gaming company, was one of the contenders for the casino license. But after taking a close look at the site, they decided it wasn't the right fit. ### Why Did Universal Entertainment Withdraw? The exact reasons for the withdrawal haven't been made public. But due diligence is a critical step in any major development, especially when it involves international gaming regulations and large-scale infrastructure. It's possible that Universal Entertainment found the terms less favorable than expected, or they may have concerns about the market. The CPCEC has been trying to attract top-tier operators, but this isn't the first time a potential investor has backed out. In fact, the project has faced several delays and changes in plans. > "That was another applicant that considered the integrated resort plot… They came in; they, again, withdrew during their due diligence." – Revan Wickramasuriya, CPCEC Director General ### What This Means for the Future of Colombo Port City The withdrawal is a setback, but it's not necessarily a dealbreaker. The CPCEC is still pushing forward, and there are other interested parties. However, it does raise questions about the attractiveness of the project to international gaming companies. With competition from other Asian casino hubs like Singapore, Macau, and the Philippines, Sri Lanka needs to offer a compelling proposition. The government has been working on new gaming regulations to make the market more transparent and appealing. But time will tell if they can seal the deal with another operator. ### The Bigger Picture: Casino Expansion in Asia Universal Entertainment's decision comes at a time when casino operators are reevaluating their expansion strategies. The global gaming industry is still recovering from the pandemic, and companies are being more cautious about new investments. In Asia, several jurisdictions are vying for a piece of the lucrative casino market. Japan recently approved its first integrated resorts in Osaka, and Thailand is exploring legalizing casinos. Sri Lanka's Port City project is ambitious, but it faces stiff competition. For now, Universal Entertainment is focusing on its existing properties, including the Okada Manila in the Philippines. ### What's Next for Colombo Port City? The CPCEC will continue to market the integrated resort plot to other potential investors. The project's success depends on attracting a major operator with deep pockets and experience in the gaming industry. The Sri Lankan government has high hopes for Port City, which is expected to cost billions of dollars and take years to complete. But with this latest withdrawal, they'll need to work harder to convince investors that the risk is worth the reward. We'll keep an eye on this developing story.