Alcohol and drug watchdog raises concerns over security and economic viability of cannabis cultivation at Mirigama

The government’s plan to launch cannabis cultivation in Mirigama through seven foreign companies has drawn sharp criticism from the Alcohol and Drug Information Centre (ADIC), which has raised concerns over security and economic viability.

ADIC questions how authorities can guarantee that cannabis grown under so-called “secure cultivation” will remain within restricted zones, and whether the scheme will deliver meaningful economic returns. In a statement, the watchdog has outlined eight key concerns regarding the Board of Investment (BOI) project, under which seven overseas firms have been permitted to grow cannabis for export.

ADIC has pressed for clarity on realistic production volumes, pricing, and profits in the highly competitive global cannabis market. It has also demanded evidence of an independent international feasibility study to estimate genuine foreign exchange inflows, and whether Sri Lanka could compete with established producers such as China and the Netherlands. ADIC has further argued that allowing cannabis cultivation is questionable at a time when other banned narcotics remain accessible locally. It has urged the government to reverse the decision in the public interest.

BOI sources defended the project, stressing that the entire harvest would be exported, with none used within the country. Regulations would ensure that leftover seeds, leaves, or roots after processing were destroyed, they said.

Cannabis is set to be cultivated legally for the first time in Sri Lanka on a 64-acre site in Mirigama, under full BOI supervision and with support from the Ministry of Public Security. The initiative aims to supply overseas medicinal manufacturing and research markets.

Out of 37 applications, seven foreign investors met the eligibility criteria and were granted six-month temporary licences.

Each investor must commit a minimum USD 5 million investment and lodge a USD 2 million bond with the Central Bank before operations commence.

By Chaminda Silva ✍

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