Sri Lanka’s fragile investment recovery faces renewed pressure as foreign-backed infrastructure projects encounter regulatory roadblocks, raising concerns over policy inconsistency and investor protection. The most recent flashpoint is the Ambuluwawa Cable Car Project, where Amber Adventures Ltd. warns that nearly USD 3.5 million already invested could be lost due to what it describes as unlawful regulatory interference.
In a formal communication to the Board of Investment (BOI), Amber Adventures stated that government actions have abruptly disrupted a project that had obtained comprehensive approvals from all relevant authorities. These include the Central Environmental Authority (CEA), Urban Development Authority, National Building Research Organisation (NBRO), Sri Lanka Tourism Development Authority, Ministry of Defence, Cabinet of Ministers, and the BOI itself.
The crisis emerged following a January 2026 letter from the CEA suspending construction activities, allegedly based on unverified public complaints and social media claims, pending a site inspection. The company insists the suspension lacks a legal foundation and undermines regulatory due process.
The Ambuluwawa project is a USD 12.75 million public-private partnership structured under a build-operate-transfer model. All financial and operational risks are borne by the investor, while the completed cable car valued at over Rs. 5 billion is scheduled to be transferred to the government free of charge after 13 years. Amber Adventures argues that halting such projects deprives the State of future assets while sending damaging signals to global investors.
Notably, the investment was secured during Sri Lanka’s 2022 economic crisis, when foreign capital inflows were critically scarce. According to the company, regulatory reversals at this stage threaten to undo hard-won investor confidence and discourage future inflows at a time when economic recovery remains fragile.
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 said .
“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.
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