Foreign investments encouraged in the mineral sector despite controversies
- 5opn1
- November 27, 2024
- Investment
- Foreign investments encouraged in the mineral sector despite controversies
- 0 Comments
Sri Lanka is promulgating new laws and initiatives in the hope of securing up to 10 foreign investments in mining with a view to increasing transparency and deriving greater value from the country’s mineral resources.
Highly prospective mineral deposits in the country include 7.5 million MT (metric tonnes) of ilmenite, rutile, and zircon in Pulmudai and Puttalam; 45,000 MT of graphite; and 60 million MT of apatite, according to Board of Investment data.
With these resources, nonetheless, the mining sector presents a number of challenges. Indistinct policies on resource management and foreign investment discourage long-term investors.
Strict environmental regulations, though important, delay project endorsements. Mining, particularly for mineral sands, has commonly caused coastal erosion, loss of biodiversity, and habitat destruction, which ignites wide public outcry and increases regulatory pressure.
