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Suspension Threatens BOI-Approved Ambuluwawa Cable Car Project as Investor Seeks to Recover $3.5 Million

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Amber Adventures (Pvt) Ltd, the developer behind the Board of Investment (BOI)-approved Ambuluwawa Cable Car Project, has issued a warning of potential legal action to recover its investment. The company cites what it describes as arbitrary obstruction by state authorities, which it claims is jeopardizing the project’s continuation.

In an urgent notice directed to the Chairman and Director General of the BOI, the company reported receiving a letter from the Central Environmental Authority (CEA) dated January 9, 2026. This letter instructed the suspension of project development activities pending a site inspection, citing complaints and information circulated on social media.

Amber Adventures asserted that the suspension is unlawful and endangers the project’s viability. The company disclosed that it has already committed approximately USD 3.5 million out of a total approved investment of USD 12.75 million for the project’s two-phase development. This investment was secured in 2022 during Sri Lanka’s economic crisis, with backing from a consortium of investors hailing from Sri Lanka, the United States, and China.

The project is being executed under a Build-Operate-Transfer (BOT) model, where the investor assumes all financial, technical, and project risks. According to the company, the agreement spans a 13-year term—comprising three years for construction and ten years for operation—after which the entire system, valued at over Rs. 5 billion, will be transferred to the Government of Sri Lanka at no cost.

Amber Adventures emphasized that it has received approvals from multiple state institutions, including the CEA, Urban Development Authority (UDA), Cabinet of Ministers, and the Ministry of Defence, and has adhered to BOI procedures throughout the process.

The company also pointed to ongoing interference by certain officials, referencing a previous legal dispute involving the Udapalatha Divisional Secretary. It cited findings from the Court of Appeal in case number CA WRIT 656/2024, where the court determined that the official acted in bad faith and ordered her to personally pay costs of Rs. 100,000.

Addressing allegations on social media that construction has led to landslides, the company categorically denied these claims. It noted that inspections conducted by the National Building Research Organisation (NBRO) after Cyclone Ditwah confirmed the stability of all three construction sites, with no evidence of landslides found.

Amber Adventures warned that ongoing obstruction could undermine investor confidence and raises serious concerns over the protection of investments in Sri Lanka. The company stated that it has already initiated discussions with stakeholders and legal advisors regarding the potential termination of the project and recovery of losses.

“We reserve our rights in law to seek restitution of investment, financial losses, and damages,” the company stated, urging the BOI to intervene urgently in the national interest.


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