Sri Lanka To Grow Cannabis; Grants Licenses To Foreign Investors

Colombo: The Sri Lankan government has granted approval to seven foreign investors to legally cultivate cannabis for export, under strict regulations. The permission has been given as a project under the Board of Investment (BoI) of Sri Lanka.

Cabinet Spokesman and Media Minister Nalinda Jayatissa said that the government’s decision was a continuation of a process that began in 2004, and all necessary approvals, including from the Cabinet of Ministers, had already been received in the past.

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The seven foreign investors were chosen from 37 applicants for the cannabis cultivation project, and the BoI has given legal clearance to them.

As an initial phase, each investor has been given a six-month temporary license. The government plans to extend the cultivation period depended on how well the project progresses.

Each investor was required to deposit a bond of USD 2 million with the Central Bank of Sri Lanka as a prerequisite.

Former Commissioner General of the Ayurveda Department Dr Dhammika Abeygunawardena who is acting as the supervising officer for the project stated that the minimum investment required to start a cannabis cultivation project is USD 5 million.

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The cannabis grown in Sri Lanka must be exported and should not enter local market, with the government ensuring it is used exclusively for pharmaceutical production and testing.

The cannabis will be grown on 64 acres in Mirigama under strict regulations. The BoI, along with the ministries of Public Security and Parliamentary Affairs and Environment, and the Department of Ayurveda, will all jointly supervise the project.