China-based Amber Adventures (Private) Limited has officially pulled out of the Ambuluwawa Cable Car Project, informing the Board of Investment (BOI) in writing yesterday (13 Jan).
According to media reports, the company, involved in Sri Lanka’s first cable car venture, has cited ‘regulatory obstruction and arbitrary state action’ for its decision.
In its letter to the BOI, the Chinese company said it has decided to withdraw from the project 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 clearance from technical agencies.
Revealing that it had already invested US $ 3.5 million of the US $ 12.75 million in total investment, the company further said the investment 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 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.
The company pointed out that 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.
Further rejecting claims of landslide risks, the company noted 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.
Amber Adventures joins a list of other foreign companies that have exited Sri Lanka since 2022, such as Japan’s Mitsubishi Corporation, French sporting goods retailer Decathlon, India-based food delivery platform Zomato and the Adani Group.
( Source : newswire.lk)
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