The government has, for the first time, granted approval for seven foreign investors to legally cultivate cannabis in Sri Lanka under strict conditions, former Commissioner General of the Ayurveda Department Dr. Dhammika Abeygunawardena announced.
The initiative, implemented as a Board of Investment (BoI) project, saw the selection of these investors from 37 applicants, with each granted legal clearance.
In the first phase, investors have received temporary six-month licences, with extensions dependent on progress reports.
Each investor is required to deposit a USD 2 million bond with the Central Bank as a guarantee, while the minimum investment to start cultivation is set at USD 5 million.
All cannabis grown must be exported exclusively for pharmaceutical production and testing, with no domestic use permitted.
A total of 64 acres of BoI land in Mirigama has been allocated for the project, and stringent measures are in place to prevent any part of the plant from entering the external environment.
The cultivation sites must be securely fenced, with Special Task Force (STF) and police protection arranged by the investors.
The BoI, along with the Ministries of Public Security and Parliamentary Affairs, the Ministry of Environment, and the Department of Ayurveda, will jointly oversee the project.
Dr. Abeygunawardena said the government expects significant foreign exchange earnings from the initiative, and credited former State Minister Diana Gamage for her role in creating the legal framework for cannabis cultivation in Sri Lanka.
