• Seeks findings of studies on any econ. benefits, social/environmental impacts in backdrop of global demand saturation 
• Cites issues with preventing locally cultivated cannabis entering local mkt., any legal changes as existing law prohibits cultivation, production costs

The Alcohol and Drug Information Centre (ADIC) questioned the Government as to whether any studies have been conducted on the potential economic benefits as well as the social and environmental impacts of the Government’s recent decision to allow the commercial cultivation of cannabis, and urged to reveal the findings of any such studies.

ADIC Executive Director Sampath De Seram made these remarks with regard to the Government’s decision to permit seven foreign investors to cultivate cannabis in Sri Lanka under strict conditions, targeting foreign markets. He added that such studies are necessary, given the fact that the Government’s decision could have far reaching impacts.

He told The Daily Morning that the Government’s decision poses several practical concerns including preventing the cultivated cannabis from entering the local market. He added that despite the Government’s claim that this will be implemented under strict conditions, there are other drugs in Sri Lanka of which the production and transport are completely prohibited but which still can be found in the country. With regard to the legal situation surrounding cannabis, De Seram questioned whether legal changes will be made, as the existing law prohibits the cultivation of cannabis.

“The global cannabis industry is not a very profitable one and has been on the decline during the past few years because there is an oversupply. The demand has already been satisfied,” De Seram claimed, expressing concerns about Sri Lanka’s ability to compete with bigger cannabis exporting countries with more land, especially given the cost of production in Sri Lanka. He added that such matters should have been studied in advance.

It has been reported elsewhere that approval has been granted for this project under the Board of Investment (BoI), in 64 acres of land already allocated in the Mirigama area, with the seven foreign investors selected from 37 applicants. Further, in the first phase, each investor has been issued a temporary licence for six months, with the Government planning to extend the cultivation period based on progress reports. 

Also, as a condition, each investor must deposit a bond of $ 2 million with the Central Bank as a guarantee, with the minimum investment required to start a cannabis cultivation venture being $ 5 million. Moreover, all cannabis cultivated in Sri Lanka must be exported with no domestic use, and the Government must be assured that it will be used solely for pharmaceutical production and testing purposes, and that no part of the cannabis plant, including the seeds, leaves, or roots, can be released into the external environment during cultivation. 

Additionally, the cultivation site must be enclosed by a secure fence, and investors must arrange for Special Task Force and Police protection for the premises. The BoI, the Ministry of Public Security, the Ministry of Environment and the Department of Ayurveda are jointly responsible for overseeing the project.