Sri Lanka’s EDB to fully harness potential of mineral-based sector with industry Chamber
Daily FT: The Export Development Board (EDB) has identified the value-added Mineral products sector as a potential sector to be developed and promoted in the international market.
It said Sri Lanka possesses a wealth of industrial minerals that can be processed and transformed into value-added products. This value addition can create higher-value exports, generate more employment opportunities, and contribute to the country’s economic growth.
In this regard, a meeting was held with the members of the Chamber of Mineral Exporters (CME) and EDB recently to foster unprecedented growth in Sri Lanka’s mineral sector. Chaired by EDB Chairman and CEO Dr. Kingsley Bernard, the meeting witnessed the participation of stalwarts from both organizations coming together to carve out a path to prosperity for the mineral-based industry in Sri Lanka.
The CME was represented by its Chairman Amila Jayasinghe (Bogala Graphite Lanka PLC Chairman), Vice Chairman A.F.M. Farook (Ceyquartz MBI Chief Operating Officer), Secretary Dr. Sandun Dalpatadu, (from Ruhunu Lanka Minerals, Damsila Resources and Krishna Mining Company (Ceylon)), Treasurer Mohammed Yaasir (Mirama Quartz Industries) and ExCo Member Jaliya Gunasena, representing Lanka Minerals and Chemicals and LANMIC Exports.
During the meeting, the members of the Chamber of Mineral Exporters insisted on Governmental support in research and development to revise royalty systems grounded in pithead value, in line with international norms.
A significant proposal brought forth was a request for a 300% tax rebate for research and development activities in collaboration with Sri Lankan educational institutions. Additionally, the members of the CME emphasized the necessity for a fair and equitable approach to royalty calculations to ease the financial burden on mining entities.
The stakeholders advised the Government to foster foreign investments and proposed the State conduct a comprehensive ore reserves study to maintain transparency and informed decision-making within the industry. They also proposed the importance of securing international accreditation for the Geological Survey and Mines Bureau laboratory in collaboration with the Sri Lanka Standards Institution to enhance global credibility.
Furthermore, the members emphasized the untapped potential of numerous pocket mines in Sri Lanka, advocating for the development of support industries equipped with state-of-the-art technology. The members of CME urged the Government to consider duty waivers for the import of new technology and pertinent spare parts to foster innovation and elevate the sector to international standards.
OSL take:
Sri Lanka’s mineral sector remains an untapped business/investment opportunity in the country. Sri Lanka is known to have a large number of mineral deposits that are of high quality and could be used as raw materials by many industries. The many trade agreements as well as trade concessions enjoyed by the country could also boost the exporting of value-added mineral-based products while Sri Lanka’s export authorities are also focused on diversifying the country’s existing export product portfolio. Sri Lanka’s manufacturing and export sectors have shown a steady growth even amidst challenging economic conditions experienced by the country during the past few years. Given the growth and business potential in the country’s manufacturing and export sectors as well as the emerging business opportunity in the mineral sector, foreign businesses/investors could confidently explore the expanding opportunities in Sri Lanka.
| Article Code : | VBS/AT/20231006/Z_4 |