ECONOMYNEXT – An Indian delegation led by the Ministry of Mines, comprising representatives from leading Indian public sector mining companies, visited Sri Lanka’s key mining sites and met the island nation’s top officials as it explored potential collaborations in the mines and minerals sector.
The delegation met Sunil Handunnetti, Minister of Industries and Entrepreneurship Development.
The members of the delegation also held discussions with the Chairpersons of key Sri Lankan mineral sector State-Owned Enterprises (SOEs), including Kahatagaha Graphite Lanka Ltd., Lanka Mineral Sands Ltd., Geological Survey and Mines Bureau (GSMB), and Lanka Phosphate Ltd., among others, the Indian High Commission in Colombo said in a statement.
They also met with the Director General of the Board of Investment (BOI) and other senior government officials.
“The purpose of the visit was to explore investment and collaboration opportunities, promote technical cooperation in advanced mining technologies, and discuss joint initiatives for value addition in the mineral sector,” it said.
The visit was after the initial meeting 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 in the minerals sector.
“The Indian delegation also undertook site visits to key mining locations in Sri Lanka, gaining valuable insights into the operational landscape and exploring areas for future collaboration.”
According to the state-run Board of Investment (BOI) data, Sri Lanka has 7.5 million metric tons (MT) of Ilmenite/Rutile/Zircon deposits in both Eastern coastal town of Pulmudai in Trincomalee district and Northwestern coastal town of Puttalam, 45,000 MT of graphite, and 60 million MT of Apatite.
Both India and Pakistan are given market access to the deposits with duty concession under Indo-Sri Lanka Free Trade Agreement (ISLFTA) and Pakistan-Sri Lanka Free Trade Agreement (PSLFTA) with 100 percent duty free for any machinery related to the mining business.
The previous government attempted to finalize 10 mining companies which have been looking to invest in the island nation’s mining for a long time with some changes to the mining regulation, but it could not complete the process before its electoral defeat in September 2024.
Former President Ranil Wickremesinghe’s Cabinet in August 2023 approved several proposals aimed at promoting foreign and local investment in the country’s mineral industry to boost revenues in a sector which has been long dragged by corruption.
The previous government changed a key regulation which said companies given mining approval should start value addition from day 1.
The regulation changed to allow mining companies to export the minerals either for 24 months or a maximum 30 percent of the grids without value addition. The licensee then could put up a value addition plant.
Sri Lanka exports the minerals to the United States, United Kingdom, China, India, and Pakistan. The island nation earned around $25 million in 2024, less than half it exported in 2022, Central Bank data showed.
India has been eyeing Sri Lanka’s mineral resource rich port district for decades.
A mineral sand deposit in Sri Lanka’s northern part contains Ilmenite, Rutile, Zircon, Monazite, Garnet, Sillimanite, and other heavy minerals, Export Development Board (EDB) data shows. (Colombo/May 23/2025)
