ECONOMYNEXT – An Indian delegation led by the Ministry of Mines, comprising representatives from main Indian public sector mining corporations, visited Sri Lanka’s key mining websites and met the island nation’s prime officers because it explored potential collaborations within the mines and minerals sector.
The delegation met Sunil Handunnetti, Minister of Industries and Entrepreneurship Growth.
The members of the delegation additionally held discussions with the Chairpersons of key Sri Lankan mineral sector State-Owned Enterprises (SOEs), together with Kahatagaha Graphite Lanka Ltd., Lanka Mineral Sands Ltd., Geological Survey and Mines Bureau (GSMB), and Lanka Phosphate Ltd., amongst others, the Indian Excessive Fee in Colombo stated in a press release.
Additionally they met with the Director Normal of the Board of Funding (BOI) and different senior authorities officers.
“The aim of the go to was to discover funding and collaboration alternatives, promote technical cooperation in superior mining applied sciences, and talk about joint initiatives for worth addition within the mineral sector,” it stated.
The go to was after the preliminary assembly between India’s Union Minister of State for Coal & Mines Shri Satish Chandra Dubey and Handunnetti held on 15 February 2025 in New Delhi on enhancing cooperation within the minerals sector.
“The Indian delegation additionally undertook website visits to key mining areas in Sri Lanka, gaining useful insights into the operational panorama and exploring areas for future collaboration.”
In line with the state-run Board of Funding (BOI) information, Sri Lanka has 7.5 million metric tons (MT) of Ilmenite/Rutile/Zircon deposits in each Jap coastal city of Pulmudai in Trincomalee district and Northwestern coastal city of Puttalam, 45,000 MT of graphite, and 60 million MT of Apatite.
Each India and Pakistan are given market entry to the deposits with responsibility concession underneath Indo-Sri Lanka Free Commerce Settlement (ISLFTA) and Pakistan-Sri Lanka Free Commerce Settlement (PSLFTA) with one hundred pc responsibility free for any equipment associated to the mining enterprise.
The earlier authorities tried to finalize 10 mining corporations which have been trying to spend money on the island nation’s mining for a very long time with some adjustments to the mining regulation, however it couldn’t full the method earlier than its electoral defeat in September 2024.
Former President Ranil Wickremesinghe’s Cupboard in August 2023 accepted a number of proposals aimed toward selling international and native funding within the nation’s mineral trade to spice up revenues in a sector which has been lengthy dragged by corruption.
The earlier authorities modified a key regulation which stated corporations given mining approval ought to begin worth addition from day 1.
The regulation modified to permit mining corporations to export the minerals both for twenty-four months or a most 30 % of the grids with out worth addition. The licensee then may put up a worth addition plant.
Sri Lanka exports the minerals to america, United Kingdom, China, India, and Pakistan. The island nation earned round $25 million in 2024, lower than half it exported in 2022, Central Financial institution information confirmed.
India has been eyeing Sri Lanka’s mineral useful resource wealthy port district for many years.
A mineral sand deposit in Sri Lanka’s northern half accommodates Ilmenite, Rutile, Zircon, Monazite, Garnet, Sillimanite, and different heavy minerals, Export Growth Board (EDB) information reveals. (Colombo/Could 23/2025)
