After years of heated criticism, Sri Lanka’s government has taken a historic step by approving tightly controlled hemp cultivation for export. The policy, once fiercely opposed by current leaders, is now being presented as a secure, high-value investment opportunity under the watch of the Special Task Force.
Just a few years ago, Foreign Minister Vijitha Herath, then seated in the opposition benches, condemned the idea of generating export income from cannabis cultivation. In a televised interview, he questioned whether Sri Lanka should base its economy on cannabis, likening the proposal to endorsing the global sale of illegal drugs. His remarks came in response to a plan by the previous government to cultivate cannabis for export, a proposal that he dismissed as reckless and morally questionable.
Back then, Herath’s criticism was sharp and uncompromising. But in a dramatic shift, the government led by the Janatha Vimukthi Peramuna (JVP), now in power, has endorsed regulated hemp cultivation for the first time in Sri Lanka’s history, strictly for export purposes.
A cabinet-approved plan
At a press conference on August 12, Cabinet Media Spokesperson Minister Nalinda Jayatissa announced that the initiative will proceed under regulations finalised in April 2024. These rules were first prepared during the tenure of former State Minister of Indigenous Medicine Sisira Jayakody. The project, Jayatissa explained, will be jointly implemented by the Department of Ayurveda and the Board of Investment (BOI) within designated investment zones.
“This is the first time such permission has been granted. Investors will be allowed to export all parts of the hemp plant under government supervision and strict security measures,” he said, noting that while seven investors had previously expressed interest, delays in formal processes slowed progress.
According to Jayatissa, the newly approved programme aims to ensure that hemp cultivation remains tightly regulated, with all production restricted to secure investment zones and fully monitored by state agencies.
The history of the hemp debate
The proposal for hemp cultivation has been circulating for years. In October 2023, then-State Minister Sisira Jayakody revealed that cabinet approval was imminent. By February 2024, former State Minister of Tourism Diana Gamage confirmed the green light for cultivating medicinal hemp for export.
Gamage, one of the most vocal supporters of the initiative, repeatedly argued that hemp could replace declining export crops like tea, rubber, and coconut. She described hemp cultivation as “a gift from nature” that could generate billions in foreign exchange and reduce the country’s dependence on international loans such as those from the IMF.
In June 2023, former State Minister of Investment Promotion Dilum Amunugama said the cabinet would be approached for approval of a pilot project. He explained that future expansion would be based on the pilot’s outcomes and revealed that both foreign and local investors were interested, provided investments were made in US dollars.
Media reports at the time also stated that then-President Ranil Wickremesinghe, acting as Finance Minister, had sought cabinet approval to implement the recommendations of an expert committee on manufacturing hemp-based products exclusively for export.
BOI’s role and investor interest
Efforts to implement the project have now advanced significantly. A senior BOI official, speaking to BBC Sinhala on condition of anonymity, confirmed that five out of six investor applications had already been approved. Contract signings are expected in September.
The official further revealed that hemp cultivation will take place in the Mirigama and Mirijjawila investment zones, with all sites guarded by the Police Special Task Force (STF). Licenses for these ventures will be issued under strict terms by the Department of Ayurveda.
While the ruling party’s earlier opposition to hemp cultivation was resolute, the present policy reflects a strategic economic decision. The government now frames hemp exports as a secure and profitable industry that could help bolster the nation’s struggling economy.
With its blend of tight regulation, dedicated security, and targeted export markets, the initiative represents a marked departure from past political rhetoric and opens a new chapter in Sri Lanka’s agricultural and trade policy.
