• Forest Dept. dispute delays € 55 m cable car project
• Nanu Oya to Nuwara Eliya cable car remains in limbo
• SLTDA pushes for resolution as investor awaits land approval
• Land allocation dispute halts groundbreaking despite full approvals

Sri Lanka’s first cable car project remains in limbo due to a dispute with the Forest Department over the release of a small portion of land, despite all necessary approvals having been granted, the Sri Lanka Tourism Development Authority (SLTDA) reveals.

Speaking to The Sunday Morning Business, SLTDA Acting Director General Upali Ratnayake revealed that despite receiving all necessary regulatory approvals, Sri Lanka’s first cable car project from Nanu Oya to Nuwara Eliya had failed to break ground up to now. 

He added that this was due to an ongoing dispute over the refusal by the Forest Department to release a small portion of land for the investor to park the cable car buckets.

“There is a requirement for a small piece of land for the parking of the investor’s buckets. Other than that, everything else has been finalised,” he stated.

Ratnayake said that in response to the investor’s request, the Forest Department had offered a piece of land that was inadequate for the investor’s purposes. Accordingly, the project continues to be in limbo due to the refusal of both parties to compromise. 

The SLTDA Acting Director General further stated that this cable car project could be a signature project for the country and that therefore Sri Lanka should work to facilitate the project.

He revealed that the former President had held a meeting with all stakeholders in the hopes of finding a solution for this issue, claiming that the SLTDA was doing its utmost to bring the landmark project to fruition.

The project, which is an initiative of Outdoor Engineering Lanka Ltd., was announced in December 2021 and facilitated by the SLTDA.

The cable car project was allotted land in Nuwara Eliya on a 30-year leasehold basis and will involve a total capital investment of € 55 million to construct a 4 km-long cable car line connecting Nanu Oya and the Nuwara Eliya town. 

According to the Memorandum of Understanding (MOU) signed between Outdoor Engineering Lanka and the SLTDA on 9 December 2021, the project will be implemented on a Build-Own-Operate-Transfer (BOOT) model basis, and upon the expiration of the lease, it will be transferred to the Government.