State Company Seeks Exclusive Rights to Eastern Coastal Mineral Deposits 📈

A Parliamentary committee is reviewing a request by State-owned Lanka Mineral Sands Ltd. (LMSL) for exclusive mining rights over 68 grids along Sri Lanka’s northeastern coastline, urging that these deposits not be allocated to private firms. • Exclusive Mining Rights & CID Referral: LMSL requested exclusive access to eastern mineral sands to supply raw materials for downstream value addition. The oversight committee discussed reviewing past licenses, transferring irregular allocations to LMSL, and referring identified past licensing irregularities to the CID. • National Economic Context & Potential: Under the National Mineral Policy, Sri Lanka aims to shift from exporting raw resources to becoming a regional mineral processing hub. • Total Mineral Sands Reserves: ~604 million tonnes • Export Revenue Potential: Currently estimated at US$ 778 Mn, with long-term potential reaching US$ 2 Bn through value-added manufacturing and downstream processing. • Private Sector & Policy Concerns: The Chamber of Mineral Exporters (CME) cautioned that regulatory delays and policy pauses at the Geological Survey and Mines Bureau (GSMB) risk freezing foreign investments and freezing existing projects. Exporters emphasized that the government should focus on transparent rules and governance rather than direct commercial management.