He was speaking at a function in Colombo where new drugs produced by the Ayurvedic Drugs Corporation were introduced to the market.
Several countries have relaxed regulations on the sale and use of cannabis.
Senaratne said the decision has been prompted by a recent shortage and importations from India to produce Ayurvedic drugs.
The minister also stressed the need to use modern technology to develop traditional medicinal methods.
He went onto say that Ayurvedic medicine has cures for certain illnesses for which the western medicine has no answers.