ECONOMYNEXT – An Indian mining delegation led by the country’s Ministry of Mines is in Sri Lanka to explore opportunities in the island nation’s mining sector, the Indian High Commission in Colombo said.
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 Indian High Commission in its official X-platform said High Commissioner Santosh Jha “interacted with the Indian mining delegation” led by the country’s Ministry of Mines during their visit to Sri Lanka.
“The delegation is exploring potential opportunities for collaboration in the mining and minerals sectors,” it said.
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 Trincomalee, the mineral resource rich 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 21/2025)