In August 2025, Sri Lanka approved its first reported legal foreign-investor cannabis cultivation project for export, marking a significant shift in how the country engages with the plant’s economic potential.
The Commissioner General of Ayurveda, Dr. Dhammika Abeygunawardena, announced that the Board of Investment (BOI) of Sri Lanka had approved 7 foreign investors (selected from 37 applicants) to legally cultivate cannabis on the island.
Key details: The project covers 64 acres in the Mirigama area, with a minimum investment of USD 5 million per investor and a mandatory bond of USD 2 million deposited with the Central Bank of Sri Lanka. Initial licenses are for 6 months (temporary), extendable based on progress. All product must be exported exclusively for pharmaceutical production and testing. Special Task Force (STF) and police protection is required on-site. (Some reports add that all cannabis plants must be imported with no local seeds permitted, and that no part of the plant may be released into the external environment, though these more specific operational details could not be independently verified in the public sources reviewed.)
What this means for tourists: Nothing, practically speaking. The BOI cultivation program is strictly export-oriented and pharmaceutical in nature. It does not change domestic cannabis law, create any legal access for visitors, or affect the Ayurvedic supply chain.
What it signals: Sri Lanka is slowly recognizing the economic value of cannabis, even as its domestic prohibition remains firmly in place. The program has drawn opposition from the Alcohol and Drug Information Centre (ADIC), and earlier reporting noted concerns from the Sri Lanka Medical Association, the College of Psychiatrists, and the College of Community Physicians, raising questions about market viability and potential diversion to domestic black markets.
Want to see how other Asian countries are navigating cannabis reform? Check out Herb’s guide to cannabis in Thailand, which went through its own dramatic regulatory shifts.