FINANCIAL CHRONICLE — Sri Lanka is in the process of formulating a new national mineral policy aimed at enhancing local value addition and curbing the export of unprocessed raw materials, as stated by Minister Sunil Handunetti in parliament.
Handunetti noted, “Our existing policy, which has been in place since 1999, is being revised to create a new National Mineral Policy for 2026 that aligns with contemporary needs.”
The proposed policy intends to encompass the entire mineral sector lifecycle, integrating aspects such as exploration, mining, processing, and value addition into a unified framework, he explained.
This policy update comes in response to concerns that previous license holders for exploration have not initiated actual mining activities, resulting in the inefficient use of the nation’s natural resources.
Out of the twelve licenses currently active, six are owned by state-operated entities, including Lanka Mineral Sands, Kahatagaha Mine, Eppawala, and Bogala.
Rathnayake has pointed out that the absence of local processing capabilities has necessitated the export of natural resources in their raw forms, which yields minimal economic benefits.
Handunetti emphasized, “Typically, these resources are exported without any processing. Our goal is to ensure that mineral exports occur only after value addition has been achieved.”
The 2026 policy is set to impose strict regulations regarding value addition, ensuring that future mineral exports contribute to increased domestic revenue and foster the development of local industries before they are shipped abroad. (Colombo/Jun9/2026)
