Govt. seeks investment proposals for medicinal cannabis projects

• Move comes into light after Cabinet Co-Spokesman and Minister Bandula Gunawardena in February 2024 dismissing claims ofproposal presented to Cabinet of Ministers 
• Projects will fall under joint oversight of BOI and Department of Ayurveda 
• BOI to facilitate and implement projects within dedicated zone, while DOA will manage cultivation, production, regulation, licensing processes
• Qualified applicants must make minimum investment of $ 500,000; must place security deposit of $ 2 m with BOI prior to signing agreement and be held for duration of license’s validity
• Initial license fee at 
• $ 100,000 with annual renewal fee of $ 200 thereafter

The Government has called for project proposals from local and foreign investors interested in the cultivation and manufacturing of medicinal products from cannabis (Triloka Vijayapathra) for export purposes. 

The initiative aims to tap into the global demand for medicinal and allied products derived from cannabis.

The move comes into light after the Cabinet Co-Spokesman and Minister Bandula Gunawardena on 6 February 2024 dismissing claims that a proposal had been presented to the Cabinet of Ministers on cultivating cannabis for export purposes. 

(https://www.ft.lk/front-page/Bandula-denies-Cabinet-approval-for-cannabis-export/44-758211) 

The projects will fall under the joint oversight of the Board of Investment of Sri Lanka (BOI) and the Department of Ayurveda (DOA). The BOI will facilitate and implement the projects within a dedicated BOI zone, while the DOA will manage the cultivation, production, regulation and licensing processes.

As per the BOI, the project proposals will be evaluated according to the Ayurveda Act No. 31 of 1961, the Board of Investment of Sri Lanka Law No. 04 of 1978 and other applicable laws. 

“Qualified applicants must make a minimum investment of $ 500,000. Upon meeting the required criteria and receiving a recommendation from the BOI, the DOA will issue the necessary licenses for the projects,” the BOI advertisement noted. 

An initial license fee of $ 100,000 is required, with an annual renewal fee of $ 200 thereafter.

Additionally, qualified applicants must place a security deposit of $ 2 million with the BOI prior to signing the agreement and it will be held for the duration of the license’s validity.

“Investment proposals must include detailed information to assess the financial feasibility and technical viability of the project. Failure to provide such information may result in disqualification,” it added. 

Prospective applicants must also pay a non-refundable application fee of $ 400 to the BOI and a project evaluation fee of $ 1,250 to the DOA. Applications must be submitted to the BOI before 20 June 2024. 

Following the denial of Cabinet Co-Spokesman and Minister Gunawardena, on 7 February 2024, former State Minister of Tourism Diana Gamage confirmed that the Cabinet had already approved to export of cannabis in 2023. (https://www.ft.lk/news/Diana-affirms-Cabinet-nod-for-cannabis-export/56-758244)

She swiftly showed the Cabinet Paper No: 23/2321/631/031, a joint memorandum dated 29 November 2023 by the President and Minister of Investment Promotion and the Minister of Health on ‘Exporting the Thriloka Vijaya Pathra (cannabis) based products’ (Cabinet decision dated 12 June 2023 on Cabinet Paper No: 23/0780/601/028 refers).

Gamage said the Cabinet paper was submitted by President Ranil Wickremesinghe along with State Minister of Investment Promotion Dilum Amunugama.