📈 Cabinet Approves National Mineral Policy 2026

The Cabinet of Ministers has approved the National Mineral Policy 2026, a modernized framework designed to overhaul the sustainable management of Sri Lanka’s mineral wealth. Replacing the outdated 1999 policy, the 2026 version focuses on maximizing national benefit and economic transparency. • Strategic Focus & Value Addition The policy prioritizes transitioning from raw material exports to high-value mineral-based industries. Key objectives include developing a comprehensive mineral resource database and promoting local processing for minerals like graphite, quartz, and mineral sands to boost foreign exchange earnings. • Regulatory & Environmental Reforms • Land Ownership: Establishes new mechanisms to resolve ownership disputes during extraction. • Enforcement: Introduction of a special unit to curb illegal mining and ensure unpaid royalties are recovered. • Sustainability: Aligns with the national “A Thriving Nation – A Beautiful Life” manifesto, emphasizing rehabilitation and minimal environmental impact. • Current Status & Sector Impact Based on provisional data, the government has temporarily suspended licenses for heavy mineral exploration (e.g., ilmenite, rutile, zircon) until the new guidelines are gazetted and presented to Parliament. This "reset" aims to increase the sector’s export contribution, which currently stands at approx. US$ 389 Mn against a potential of US$ 778 Mn. • Investment Outlook The framework seeks to attract foreign technology partners through transparent licensing and joint ventures, moving Sri Lanka up the global mineral value chain.