Amid growing rumours surrounding the Government’s recent decision to grant permission to seven foreign investors to cultivate cannabis under strict regulations, The Sunday Morning reliably learns that Sri Lanka has no immediate plans to legalise cannabis or promote it as an export-oriented industry.
The move, which marks the first time such approval has been given, has sparked speculation that it could be a precursor to large-scale legalisation for export purposes — particularly at a time when several Asian nations and some European countries are easing restrictions on cannabis use for medicinal and even personal purposes.
However, reliable sources have confirmed to The Sunday Morning that despite the special permissions granted under stringent conditions, no amendments to the country’s existing laws have been proposed.
Furthermore, there have been no recent discussions within the Government on expanding cannabis cultivation or legalising its use beyond the current framework.
Approval raises concerns
Quoting former Commissioner General of the Ayurveda Department Dr. Dammika Abeygunawardana, the local media has reported that seven foreign investors had been granted approval by the Board of Investment (BOI) to cultivate cannabis in Sri Lanka under strict regulations.
Selected from 37 applicants, each investor has received a temporary six-month licence, with the possibility of extension based on progress reports, and must deposit a $ 2 million bond. A minimum investment of $ 5 million is required and all cannabis must be exported exclusively for pharmaceutical production and testing.
As reported in the media, the cultivation sites must be securely fenced, with Special Task Force and Police protection, and no part of the plant can enter the external environment. The BOI, Ministry of Public Security and Parliamentary Affairs, Ministry of Environment, and Department of Ayurveda jointly oversee the project, which aims to generate significant foreign exchange earnings.
Nevertheless, the Government’s decision to allow foreign companies to cultivate cannabis in Sri Lanka has been strongly opposed by the Sri Lanka Medical Association (SLMA). In a press statement, the SLMA urged the Government to reverse the policy, citing health, social, and economic concerns.
The association argued that the Government’s claim of cannabis cultivation for ‘medicinal use’ was misleading, noting that approved medical uses in countries like the UK and US were limited to rare conditions. It added that global demand for medical cannabis had been declining since 2021, according to the International Narcotics Control Board (INCB).
Doctors raise alarm
The SLMA warned that allowing cannabis exports could enable multinational companies to exploit new markets while undermining long-standing protections against widespread cannabis use in Sri Lanka. It also questioned the feasibility of maintaining secure plantations, given the enforcement challenges the country already faces with illegal drugs, and warned that increased availability could lead to higher local use.
Health risks highlighted included mental disorders such as depression and schizophrenia, addiction, serious lung diseases, impaired adolescent brain development, self-harm, suicide, and road accidents. Economically, the SLMA argued that any foreign currency inflows from the project would be minimal, insignificant compared to the $ 500 million remitted monthly by expatriates, and insufficient to ease Sri Lanka’s $ 100 billion debt.
“The decision represents the first breach of the dam that protected Sri Lankans from the scourge of widespread cannabis use,” the SLMA stated, warning that the move benefited foreign multinationals while exposing the country to significant public health and social costs. The association concluded by appealing to the Government not to proceed with the move, cautioning it would cause “untold misery” for the people of Sri Lanka.
Easing global restrictions
Globally, cannabis laws are gradually relaxing, with many countries in Asia, Europe, and the Americas easing restrictions for medicinal — and in some cases, recreational — use. In Asia, Thailand has legalised medical cannabis and is actively promoting it as an export-oriented industry, while India allows limited medicinal and research use under strict Government oversight.
In Europe, countries such as Germany, the Netherlands, and Switzerland permit medicinal cannabis with stringent licensing, while the US and Canada have gone further, legalising recreational use in multiple states and provinces and creating significant opportunities for international trade, research, and investment. These countries, however, maintain regulatory frameworks to prevent diversion into illegal markets, enforce quality controls, and address public health concerns.
For Sri Lanka, this global trend is particularly relevant as it competes with regional neighbours like Thailand, the Maldives, and India for tourism, foreign investment, and pharmaceutical exports.
While Sri Lanka’s cannabis initiative is currently limited to highly regulated export cultivation, observing these international models highlights both the potential economic benefits and the challenges of ensuring strict compliance, preventing misuse, and balancing trade opportunities with public health and safety concerns.
Strict laws still exist
In Sri Lanka, cannabis is governed primarily under the Poisons, Opium and Dangerous Drugs Ordinance of 1935, (commonly known as the Opium Act), which classifies cannabis and its derivatives as “dangerous drugs”. This means that the cultivation, possession, sale, distribution, and trafficking of cannabis are criminal offences unless specifically authorised by law.
Possession of small quantities, generally considered less than five kilogrammes, can result in prosecution before a magistrate’s court with penalties of fines and imprisonment of up to five years. If such cases are escalated to the high court, sentences can extend to seven years.
Larger quantities are treated more severely, often as trafficking offences, which may attract penalties of up to life imprisonment. Cultivation of cannabis is also expressly prohibited, carrying penalties of up to 20 years in prison along with fines.
The ordinance does, however, provide limited exceptions for medical, scientific, and official purposes. In practice, this means that only State-authorised ayurvedic practitioners may access cannabis for use in traditional medicinal preparations, and even then, supply is strictly regulated by the Government — typically sourced from seizures or controlled cultivation.
Outside of this narrow framework, the law maintains a zero-tolerance approach. As a result, under the Opium Act, cannabis is treated with the same seriousness as opium and other narcotics, reflecting the country’s longstanding strict stance on drugs.
The Poisons, Opium, and Dangerous Drugs Ordinance of 1935 and the Ayurveda Act of 1961 operate together to shape the legal framework for cannabis in Sri Lanka. Under the Opium Act, cannabis is classified as a dangerous drug, making cultivation, possession, sale, and distribution illegal and punishable by severe penalties, including long prison terms and heavy fines. The act, however, contains a provision allowing exemptions for medical and scientific purposes, which is where the Ayurveda Act comes into play.
The Ayurveda Act No.31 of 1961 created a regulated space for the use of cannabis in traditional medicine. It permits licensed ayurvedic practitioners to prescribe and administer cannabis as part of classical herbal remedies.
The law authorises the Department of Ayurveda and the Ayurvedic Drugs Corporation to oversee supply, ensuring cannabis used for medicine is sourced only through official channels. Importantly, this medical use is not available through ordinary doctors or pharmacies but only through practitioners registered under the ayurveda system.
No new laws, no discussions
In this backdrop, when contacted, Justice Ministry Secretary Ayesha Jinasena, PC emphasised that she had no knowledge of any Government decision or proposal to amend existing cannabis laws.
She told The Sunday Morning: “I’m not the right person to ask the question.” When the newspaper explained that any amendments would typically require approval through her ministry, she reiterated that no such proposal existed.
Jinasena further suggested that the query should be directed to senior Government officials, adding, when questioned whether it would require approaching a Cabinet member: “Perhaps.”
Meanwhile, Deputy Minister of Trade, Commerce, and Food Security R.M. Jayawardana strongly denied that there had been any recent discussions within the Government regarding the legalisation of cannabis or its cultivation for export purposes.
He stressed that no such discussions were taking place at present.