The company, which was involved in Sri Lanka’s first cable car venture, cited regulatory obstruction and arbitrary state action as the reasons for its decision to pull out of the project.
In its letter to the BOI, Amber Adventures stated that it was compelled to withdraw due to 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 the project having received clearance from relevant technical agencies.
The company revealed that it had already invested USD 3.5 million out of the total USD 12.75 million project cost. It noted that the investment had been secured during the peak of Sri Lanka’s 2022 economic crisis through a consortium of investors from Sri Lanka, China and the United States.
Amber Adventures further stated that the project had obtained all necessary approvals, including those 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, a 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, the company said repeated interference, regulatory obstruction and alleged harassment by state officials rendered the project commercially unviable.
Rejecting concerns over landslide risks, Amber Adventures noted that the National Building Research Organisation (NBRO) had inspected the site following Cyclone Ditwah and confirmed that the location was stable.
The letter also revealed that the company is now considering international legal action to recover its losses.
Amber Adventures becomes the latest foreign investor to exit Sri Lanka since 2022, joining companies such as Japan’s Mitsubishi Corporation, French sporting goods retailer Decathlon, India-based food delivery platform Zomato and the Adani Group.
