Environment Minister Dammika Patabedi said yesterday he had ordered an inquiry into the withdrawal of China-based Amber Adventures (Private) Ltd., from the Ambuluwawa Cable Car Project.Addressing the media, the Minister said the Environment Ministry had no direct agreement with the company, as the project was under the purview of the Board of Investment (BOI).

He said construction activities within the Ambuluwawa Environmental Zone had been suspended following complaints from environmental organisations in the aftermath of Cyclone Ditwah. All constructions in high-risk areas, he said, had been halted pending clearance by the National Building Research Organisation (NBRO).

According to the Minister, complaints had been received that construction at Ambuluwawa was continuing without NBRO clearance.

In response, the Ministry instructed the Central Environmental Authority (CEA) to conduct an investigation and thereafter construction activities were suspended pending a technical assessment by experts.

The Ministry of Environment subsequently ordered the immediate suspension of all construction activities within the Ambuluwawa Environmental Zone until the assessment was completed, he said, adding that work could resume if expert evaluations cleared the project.

Following the suspension, Amber Adventures (Private) Ltd,, described as the country’s first cable car venture, formally withdrew from the project, citing what it termed “regulatory obstruction and arbitrary state action.”

The company, a major Chinese investor in the project, proposed as Sri Lanka’s first cable car initiative with both Chinese and American investment, officially informed the BOI of its decision on Wednesday (14). In a letter to the BOI, the company said it had obtained all required permits and approvals in line with BOI procedures but faced repeated disruptions that resulted in significant financial losses.

Company Director Yuan Yuping warned that legal action would be pursued at the International Court of Arbitration to recover losses incurred due to the suspension of the project, citing continuous interruptions and government decisions as the cause.

Meanwhile, the Ambuluwawa Trust Board said the withdrawal of investors from the project was a major loss to the country, noting that it was regrettable that decisions had been taken without proper investigation, based on allegations by parties lacking a clear understanding of the facts.

It warned that halting a large-scale project of that nature would result in the loss of direct and indirect employment opportunities, as well as income sources for communities in the surrounding areas.

By Chaminda Silva and SK Samaranayake ✍️