Anyone who has followed Sri Lanka’s economy in recent years knows that it has struggled. In 2022, the nation’s inflation rate soared to 50% and Sri Lanka’s residents experienced frequent shortages of essential goods. The country was in major debt and defaulted on its foreign debt interest payment.

The economic crisis, which was the worst in Sri Lanka’s history, resulted in the International Monetary Fund lending Sri Lanka billions of dollars to help it jumpstart its economy. Since that time, the island nation in South Asia has searched for ways to create jobs and generate revenue, and is reportedly set to invest in multiple cannabis-focused projects.

“The Board of Investment is also attracting nearly $100 million across six projects to grow cannabis for medical oil exports to the U.S. and Europe. Cultivation will begin in secured zones, initially using container-based pilots, Herath said.” reported Reuters.

Currently, the average monthly salary for workers in Sri Lanka is LKR 60,000, which converts to about $198.95 USD per month. The nation’s major industries include the creation of textiles and apparel, tea, the coconut industry, rubber and rubber products, and gem and jewelry exports.

Developing an emerging legal cannabis industry will help create jobs, generate tax revenue, and boost local economies in Sri Lanka. During the first six years of legalization in Canada, the nation’s industry generated $29.6 billion in government tax revenue and created nearly 100,000 jobs.

Of course, Canada’s experience is the most glowing example of national cannabis industry success right now, and what Sri Lanka’s industry can expect should be tempered, if for any reason, because their $100 million investment is considerably less than what has been invested in Canada’s industry.

However, even though embracing a legal cannabis industry in Sri Lanka will not fix all of the nation’s economic woes, it will help the nation’s economy and workers to some extent, and that is worthy of celebration.