Sri Lanka to look for investors to develop Kahatagaha graphite mine
EconomyNext: Sri Lanka will look for investors to explore the graphite reserve of its Kahatagaha mine, and to mine, process, and add value to the graphite, under a public-private partnership, minister Nalinda Jayatissa said.
“The locally available technology is not sufficient to determine the reserve of the graphite in the mine,” Jayatissa told reporters.
“Taking these matters into consideration, the cabinet approved the proposal to call for proposals for expressions of interest.”
The Kahatagaha mine is currently operated by the wholly government-owned company, Kahatagaha Graphite Lanka Limited, which produces and exports graphite.
“The government will retain ownership and secure the jobs of the employees currently working in the mine.”
The mine, which spans an area of about 102 acres, is the deepest graphite mine in Sri Lanka.
The cabinet of ministers had decided to repeal a previous government decision to restructure Kahatagaha Graphite Lanka Limited through an identified investor, he said.
OSL take:
Sri Lanka’s mineral industry is a business/investment opportunity that is yet to be tapped off its full potential. With Sri Lanka’s economy on a steady growth path and the country being identified as an emerging business destination in the region supported by its geographical positioning in the Indian Ocean, the strong trade ties with many foreign countries and increasing ease of doing business environment in the country, have all helped boost Sri Lanka’s business/investment opportunities among foreign businesses/investors on the lookout for lucrative ventures in the region, especially in Sri Lanka. In the case of Sri Lanka’s mineral industry, there are many sectors that present lucrative business ventures, especially given the export potential of many minerals as well as value added products utilizing the many trade agreements and trade concessions enjoyed by Sri Lanka with many foreign countries. While there are already several local businesses engaged in the mineral industry, foreign businesses/investors exploring opportunities in the industry and related sectors could also look at expanding operations through local collaborations. Apart from the mining process for minerals, foreign businesses could also explore the value addition and export of mineral products that would guarantee quick returns on investment (ROIs).
| Article Code : | VBS/AT/20250924/Z_2 |