Sri Lanka’s Board of Investment (BOI) has refuted the claim that Chinese investor Amber Adventures Pvt. Limited has exited the Rs. 5 billion worth Ambuluwawa cable car project, as both entities are awaiting the Geological Survey and Mines Bureau, and the Central Environmental Authority to present substantiated environmental concerns, BOI Media and Publicity Director Leslie Uduwavidane told The Daily Morning Business yesterday (14).
“If they are pulling out, they should officially inform us. The letter that we have received is the one where they are conveying their grievances,” Uduwavidane said, refuting claims which state that the Chinese company had officially pulled out of the Build-Operate-Transfer (BOT) model project.
“We are waiting on the Bureau of Geology and the CEA to get together and present any information they see that would create a problem in the future. The environmental issue is a recent development, no one expected this issue,” he said, emphasising the possible geographical changes the environment surrounding the project may have undergone, due to cyclone Ditwah, between November and December last year.
On Monday, in a letter addressed to the BOI, the investor had raised concerns over the continuity of the project, as it had been halted by the Central Environmental Authority: “We are in receipt of a letter dated 9 January 2026 from the Central Environmental Authority to unlawfully suspend the development activities of the aforesaid Cable Car Project in view of purported written and verbal complaints and information published on social media until a site inspection is carried out by officials of state agencies.”
However, pushing back on the BOI’s stance that the project is in need of further evaluation, post-cyclone Ditwah, it stated that the National Building Research Organisation (NBRO) has since cleared the project to continue its work. “The National Building Research Organisation (NBRO) conducted an inspection of the premises immediately after cyclone Ditwah. It has confirmed the stability of the three sites and found no evidence of landslides or terrain failure.”
The company further raised concerns over what it deemed as unfounded claims of the project creating landslides, circulating on social media. “Social Media Activists are aggressively promoting a false narrative claiming that our construction activities have caused landslides. We categorically state that there are no landslides whatsoever at any of our three construction sites.”
It further added that it had by now invested nearly 30% of the $ 12.75 million total investment, with the first phase of the project underway.
“It is important to emphasise that of the total investment of $ 12.75 million in respect of two phases in which the said project is approved to be carried out, we have thus far invested approximately $ 3.5 million.”
Under its PPP agreement with the Government of Sri Lanka, it is to complete its construction within 3 years, operate for 10 years and then transfer the roughly Rs. 5 billion worth asset to the Government, free of charge.
“This project operates under a Build-Operate-Transfer (BOT) model. The investor consortium has absorbed 100% of the financial, technical, and project risks. The agreement stipulates a 13-year term (3 years construction, 10 years operation), after which the entire system – an asset valued at exceeding Rs. 5 billion upon completion – will be handed over to the Government of Sri Lanka free of charge.”
It added that it had followed the guidance and protocols set by the BOI, failing which, it reserves its right to seek restitution for its investment in the project. “We have executed this project strictly following all BOI guidance and protocols. We have secured approvals from relevant Government authorities, including the Central Environmental Authority (CEA), Urban Development Authority (UDA), the Cabinet of Ministers and the Ministry of Defence.
“We have begun formal discussions with our stakeholders and legal advisors regarding the potential termination of the project due to these unlawful obstructions, hindrances and interferences motivated by petty political vendettas.”
“We hereby put you on notice that we reserve our rights in law to vindicate our rights by, inter alia, seeking restitution of investment. We are currently evaluating all available legal avenues and remedies to recover our sunk costs, financial losses, and damages.”
“We have consistently acted in good faith despite regular interference. However, we cannot sustain the project indefinitely in a hostile environment of arbitrary obstruction. The absence of any form of investor protection, security of investment and any form of oversight by the Board of Investment to protect, foster and safeguard investments of any scale in Sri Lanka, is a severe dereliction of duty and a regulatory failing on the part of the Board of Investment; a significant cause for concern that any investor would be faced with.”
According to Uduwavidane, the BOI is in discussions with the representatives of Amber Adventures. “The BOI is trying to solve this problem at the moment, trying to get both environmental agencies to provide detailed reports as to why the project had been halted. Yesterday the DG and a representative from Amber Adventures had a meeting. They are a very valuable investor, this is a first time project for Sri Lanka.”
“It’s a matter of time before they would be informed of the proceedings with the two environmental institutions,” he said, failing which, the Government may have to intervene. “If not, the Government may have to take a decision on their end.”