In what appeared to be a fresh blow to the country’s investor confidence, China-based Amber Adventures (Private) Limited – the country’s first cable car venture - has officially pulled out of the Ambuluwawa Cable Car Project, citing what it called ‘ regulatory obstruction and arbitrary state action’.
The company informed the Board of Investment (BOI) in writing yesterday (13) that it decided to withdraw from the project due to what is termed arbitrary and unlawful actions by state authorities including the suspension of construction by the Central Environmental Authority (CEA) based on complaints circulating on social media, despite clearance from technical agencies.
The company said it had already invested US $ 3.5 million of the US $ 12.75 million in total investment which was secured at the height of Sri Lanka’s 2022 economic crisis by a consortium of investors from Sri Lanka, China and the United States.
The company stressed that the project had obtained all required approvals, including from the CEA, Urban Development Authority, Cabinet of Ministers and the Ministry of Defence, and was structured as a Build-Operate-Transfer (BOT) project. Under the agreement, the fully operational cable car system valued at over Rs. 5 billion was to be handed over to the Sri Lankan government free of charge after 13 years.
However, Amber Adventures said repeated interference, regulatory obstruction and harassment by state officials made the project commercially unviable. The company also rejected claims of landslide risks, noting that the National Building Research Organisation (NBRO) had inspected the site after Cyclone Ditwah and confirmed its stability.
The letter further revealed that the company is now considering international legal action to recover losses. It also says Sri Lanka’s failure to ensure investment protection and regulatory certainty sends a damaging signal to foreign investors.
“The absence of any effective oversight or protection by the BOI is a serious regulatory failure,” the company said, adding that it could no longer operate in a “hostile and unpredictable environment”.
Amber Adventures’ exit adds to a list of companies that have ceased or withdrawn operations in Sri Lanka since 2022 due to an array of reasons including economic instability, regulatory uncertainty and policy inconsistency.
Among them are Japan’s Mitsubishi Corporation, which ended its 60-year presence in Sri Lanka; French sporting goods retailer Decathlon, which indefinitely suspended operations in 2022; India-based food delivery platform Zomato, which exited the market in 2023; and the Adani Group, which withdrew from a controversial wind power project.
https://www.dailymirror.lk/breaking...as-investor-confidence-takes-a-hit/108-330287
The company informed the Board of Investment (BOI) in writing yesterday (13) that it decided to withdraw from the project due to what is termed arbitrary and unlawful actions by state authorities including the suspension of construction by the Central Environmental Authority (CEA) based on complaints circulating on social media, despite clearance from technical agencies.
The company said it had already invested US $ 3.5 million of the US $ 12.75 million in total investment which was secured at the height of Sri Lanka’s 2022 economic crisis by a consortium of investors from Sri Lanka, China and the United States.
The company stressed that the project had obtained all required approvals, including from the CEA, Urban Development Authority, Cabinet of Ministers and the Ministry of Defence, and was structured as a Build-Operate-Transfer (BOT) project. Under the agreement, the fully operational cable car system valued at over Rs. 5 billion was to be handed over to the Sri Lankan government free of charge after 13 years.
However, Amber Adventures said repeated interference, regulatory obstruction and harassment by state officials made the project commercially unviable. The company also rejected claims of landslide risks, noting that the National Building Research Organisation (NBRO) had inspected the site after Cyclone Ditwah and confirmed its stability.
The letter further revealed that the company is now considering international legal action to recover losses. It also says Sri Lanka’s failure to ensure investment protection and regulatory certainty sends a damaging signal to foreign investors.
“The absence of any effective oversight or protection by the BOI is a serious regulatory failure,” the company said, adding that it could no longer operate in a “hostile and unpredictable environment”.
Amber Adventures’ exit adds to a list of companies that have ceased or withdrawn operations in Sri Lanka since 2022 due to an array of reasons including economic instability, regulatory uncertainty and policy inconsistency.
Among them are Japan’s Mitsubishi Corporation, which ended its 60-year presence in Sri Lanka; French sporting goods retailer Decathlon, which indefinitely suspended operations in 2022; India-based food delivery platform Zomato, which exited the market in 2023; and the Adani Group, which withdrew from a controversial wind power project.
https://www.dailymirror.lk/breaking...as-investor-confidence-takes-a-hit/108-330287
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