Sri Lanka’s Export Development Board and CME collaborate to boost mineral sector
The Morning: 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. 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.
A meeting in this regard was held with 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 of Bogala Graphite Lanka PLC; CME Vice Chairman A.F.M. Farook, COO of Ceyquartz MBI (Pvt.) Ltd., Ruhunu Lanka Minerals; CME Secretary Dr. Sandun Dalpatadu, from Damsila Resources (Pvt.) Ltd. and Krishna Mining Company (Ceylon) (Pvt.) Ltd.; CME Treasurer Mohammed Yaasir, from Mirama Quartz Industries (Pvt.) Ltd.; and CME ExCo Member Jaliya Gunasena, representing Lanka Minerals and Chemicals (Pvt.) Ltd. and LANMIC Exports (Pvt.) Ltd.
During the meeting, 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, 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 that 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. CME members also 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.
A recurring theme was the call for a continuous forum involving policymakers and industry stakeholders, to facilitate practical discussions and foster innovative solutions to on-ground challenges.
The request of the members of the Chamber of Mineral Exporters is for Government intervention to bring these proposals to fruition, laying the foundation for a collaborative and prosperous future for Sri Lanka’s mineral export industry.
OSL take:
Sri Lanka’s mineral sector is an untapped market that possesses great business potential. The vast amount of high-quality minerals available in Sri Lanka presents a host of new business/investment opportunities. The overall expansion in the global manufacturing process has created a requirement for high amounts of various minerals that are available in Sri Lanka. Apart from providing raw materials for manufacturing facilities overseas, Sri Lanka also presents opportunities to set up facilities within the country to export diversified value-added products manufactured locally. The many trade agreements as well as trade concessions enjoyed by the country would provide further benefits for businesses/investors engaged in manufacturing products using local minerals for the export markets. The incentives provided by the Sri Lankan authorities to foreign businesses to start operations in the country’s manufacturing sector could provide a further boost to develop and expand businesses in the local mineral sector. With Sri Lanka showing great business potential in the mineral sector, foreign businesses/investors could confidently explore the growing opportunities in the sector.
| Article Code : | VBS/AT/20231004/Z_2 |