Sri Lanka has launched its new National Mineral Policy under Minister of Industry and Entrepreneurship Development Sunil Handunnetti, anchored on a transparent procurement framework and a mandate to stop raw-mineral exports in favour of value-added processing, NewsFirst reported.
Under the new framework, all exploration activities will be conducted through the Geological Survey and Mines Bureau (GSMB). The results of GSMB exploration will be officially gazetted, after which Expressions of Interest will be openly called and investments awarded through what Handunnetti described as a transparent process. “Our primary focus is to regulate the entire process, from exploration to mining, processing, and value addition,” the minister said.
The minister disclosed that of 12 currently valid licences only eight remain actively operational, and authorities have found that many holders had used permits “not for genuine exploration or mining, but as tools for stock-market manipulation” — the first time that framing has been publicly attached to the mineral-licence regime. The policy revision is intended to close that loophole alongside the value-addition rules.
Handunnetti pointed to ongoing enforcement actions to back the new policy, citing raids on illegal mining sites at Kotikambokka in Wellawaya. He held up quartz processing as the marquee value-addition target. “When quartz is processed and value is added, it can be transformed into high-value products, even reaching gemstone-level quality similar to diamonds,” he said. “Even the raw blocks that are exported can be processed further to achieve higher value. Currently, the true value of our natural resources is being realized by other countries.”
The minister also called on Sri Lankan investors to engage with the sector, warning that competitive bidding for the gazetted exploration tracts was already attracting heavy interest from foreign firms. “A large number of applications for exploration licenses have come from foreign parties, as they clearly understand the value of these resources,” he said. “It is disappointing that more local investors are not stepping forward. We assure full transparency, with no special treatment given to anyone, and all investments will be called through open invitations.”
Friday’s launch operationalises the policy framework Handunnetti first announced in Parliament on June 9, which replaced the 1999 framework and committed Sri Lanka to enforcing value addition before raw minerals can be exported. The new procurement architecture also tightens the licence regime that produced the suspension of Mannar sand mining permits in May pending the new framework.
