ECONOMYNEXT – Sri Lanka will allow cannabis cultivation in its export zones under strict regulations only for export purposes, Cabinet Spokesman and Media Minister Nalinda Jayatissa said.
He said the government had been continuing a process started in 2004 after all the necessary approvals, including from the Cabinet of Ministers, had been granted in the past.
“An institution has been established to start the expansion (of cannabis cultivation) under the Board of Investment (BOI),” Jayatissa, also the island nation’s Health Minister, told reporters on Tuesday during the weekly Cabinet media briefing.
He said permission is granted for the cultivation under strict safety procedures.
“This is the first time that such a situation has arisen and that the government has given the opportunity for export in this way,” he said.
The cultivation will be under the strict regulations of BOI and Department of Ayurveda and they will be allowed only to export.
Investors will also have to renew the cultivation licences every six months, Minister Jayatissa said.
Sri Lanka has recently explored the cultivation of cannabis as part of its broader efforts to earn much-needed foreign exchange amid ongoing economic challenges.
The previous government has proposed regulated cultivation of medical-grade cannabis for export purposes, particularly targeting markets in Europe and North America where medicinal cannabis is legal and in high demand.
Authorities argue that with Sri Lanka’s favourable tropical climate and agricultural expertise, the country is well-positioned to become a key player in this niche export industry.
The initiative, however, had been facing both regulatory hurdles and public debate over balancing economic potential with social and ethical concerns surrounding drug use. (Colombo/August 13/2025)