Ambuluwawa cable car project targets 15% of foreign tourist arrivals

• Regulatory hurdles threaten investor confidence

By Nishel Fernando 

The Ambuluwawa Religious and Biodiversity Complex is poised for a significant economic and infrastructural transformation with the introduction of Sri Lanka’s first-ever cable car project, a development projected to substantially increase its share of foreign tourist arrivals. 

Celebrating its 30th anniversary this week, this distinctive multi-religious and ecological site draws about 8 percent of all foreign tourists who visit the country each year. The destination aims to leverage this new 1.5-kilometre transport system, which features nine towers, to reduce travel time, enhance accessibility, and push the foreign visitor share to between 10 and 15 percent. The complex continues to serve as a major economic catalyst for the wider Kandy district, currently supported by over 40 activity points and modern hospitality additions such as the Amber Swing, Java Cafe, and W15 Ambuluwawa.

Speaking at the commemorative anniversary in the complex event this week, Ambuluwawa Governing Board Chairman and Member of Parliament Anuradha Jayaratne outlined the strategic direction and milestones of the landmark. 

“Today, as we celebrate the 30th anniversary of the Ambuluwawa Religious and Biodiversity Complex, we reflect on a remarkable journey of transformation over these three decades,” Jayaratne stated. 

He emphasised the economic vision behind the upcoming infrastructure, noting, “Our goal through the implementation of the cable car project is to increase the current 8 percent of foreign tourist arrivals to between 10 and 15 percent. This development will drastically increase visitor flow, directly empowering the local economy and uplifting livelihoods”.

Despite the project’s promising economic outlook, recent regulatory interventions have cast a shadow over its progress, threatening to paint a negative image of Sri Lanka’s investment climate. The US$ 12.75 million venture, driven by a consortium of investors from Sri Lanka, the United States, and China under the company Amber Adventures, was secured during the height of the 2022 economic crisis. 

The development includes an initial investment of US$ 4.25 million for its first phase. Operating under a Build-Operate-Transfer model, the fully operational system, valued at over Rs. 5 billion, is slated to be handed over to the Sri Lankan government free of charge after a 13-year term.

However, the Central Environmental Authority temporarily suspended construction activities following local complaints regarding alleged landslide risks, prompting the investors to halt machinery shipments and threaten to withdraw from the country while seeking international arbitration.

The company cited regulatory obstruction and arbitrary state action, warning that such interferences severely damage investor confidence. Although the National Building Research Organisation later confirmed site stability and no direct connection between the landslides and the project had been identified, the prolonged standoff highlights ongoing challenges in safeguarding foreign direct investment in the nation.

Despite these setbacks, the financial performance of the complex has mirrored its growing popularity as a premier tourist destination. Governed under Act No. 44 of 2009 with strict regulatory oversight from the Auditor General’s Department, Ambuluwawa has demonstrated exceptional fiscal growth. Between 2019 and 2024, the site’s revenue experienced a 21-fold increase. Highlighting this fiscal success during his address, Jayaratne added, “Through transparent management and collaborative governance, we have been able to successfully increase our capital assets from Rs. 372 million to a staggering Rs. 1.4 billion”.
Beyond its commercial and ecological achievements, the 30th-anniversary celebrations underscored Ambuluwawa’s commitment to spiritual and educational development. A central event of the commemoration was the laying of the foundation stone for a new international meditation center.

Furthermore, the site saw the inauguration of the Niyangoda Vijithasiri International Library, an educational facility supported by a rare book collection donated by Niyangoda Vijithasiri Thero. 

“The establishment of the international meditation center and the library today reaffirms our foundational vision of spiritual coexistence, education, and mutual respect,” Jayaratne remarked during the ceremony.

Pic by Kithsiri de Mel