Universal Entertainment Colombo has withdrawn from a proposed casino and integrated resort development in Sri Lanka’s Colombo Port City, according to a report by EconomyNext.
The company had been assessing a 10-hectare integrated resort site before exiting the process. Colombo Port City Economic Commission director general Revan Wickramasuriya disclosed the withdrawal to Parliament’s Committee on Public Finance.
Casino Applicant Leaves During Due Diligence For The Integrated Resort Site
This casino proposal was one of several investments that have been removed from the Colombo Port City development pipeline.
Wickramasuriya told the committee that five of 10 earlier projects had withdrawn, while five remained active. Other projects that left the pipeline included an Asiri Hospital development, a Gateway educational facility and a mixed-use project proposed by Clothespin Management and Development.
Universal Entertainment’s departure occurred during its assessment of the proposed integrated resort opportunity, rather than after construction had begun.
Licensing Delays Continue To Create Uncertainty For Casino Investors
The withdrawal comes amid concerns over the national gambling licensing framework. Sri Lanka’s Gambling Regulatory Authority was established without all the supporting regulations needed to process applications.
This legislation took effect on 1 December 2025, but subsidiary regulations had not been gazetted, leaving potential operators without a functioning route into the regulated online market. The regulator also missed its 30 June operational deadline. Recruitment for its director general is still unresolved, while supporting rules and legal guidance were under preparation..
Parliamentary scrutiny has focused more on offshore gambling operators. The Committee on Public Finance warned that delays were restricting oversight of offshore platforms serving Sri Lankan customers, with reports that operators were using over 40 local payment channels.
Higher Casino Costs Add To The Challenges Facing Potential Operators
Licensed land-based casinos face increased costs under the developing framework. The casino entrance levy has doubled to $100, while the levy on gross collections has risen to 18%.
The delays and added costs have created uncertainty for companies considering investment in Sri Lanka’s emerging casino and integrated-resort market. There is also a huge regulatory gap because the higher percentage of gambling activity moves through mobile devices, social media, digital payments and informal intermediaries.
Other Port City Projects Continue Despite Investment Withdrawals
The departures have not halted wider development at Colombo Port City. Primary investments across nine leased land parcels had reached approximately $1.12 billion, covering residential, mixed-use, marina and hotel projects.
Construction has begun on the marina and piling work is underway at the Colombo International Financial Centre, Home Lands and Prime Melwa Project 1. The first phase of the financial centre represents a $515 million investment and will include offices, residences and retail space.
Also, the commission is targeting an additional $1 billion in pipeline investment over the next 12 months.
Universal Entertainment’s withdrawal highlights the difficulty of attracting casino investment before Sri Lanka completes its regulatory framework. Port City can progress through non-gambling developments, but casino projects require defined licensing rules, predictable costs and a functioning regulator. Until those conditions are in place, investors may remain hesitant or seek markets with more established approval systems.
Explore more:
Share
7 views
