Sri Lanka’s newly announced National Mineral Policy has raised expectations of transforming the country into a competitive supplier of strategic minerals, but industry leaders warn that policy ambition alone will not deliver results unless deep-rooted regulatory weaknesses are addressed.
The Chamber of Mineral Exporters (CME), representing exporters and explorers of quartz, graphite, mineral sands, and mica, has described the policy as a positive beginning. However, it insists the decisive factor will be how the Geological Survey and Mines Bureau (GSMB) and the Industry and Entrepreneurship Development Ministry translate policy promises into practical reforms.
The Chamber estimates that Sri Lanka’s mineral sector currently contributes around $100 million annually through direct and indirect exports, with the potential to double that figure if regulatory barriers are removed. According to exporters, the country’s challenge is not a shortage of mineral wealth but an investment environment weakened by delays, uncertainty, and inconsistent implementation.
At the centre of industry concerns is the role of the GSMB. Exporters argue that while the institution has historically functioned as a regulator, it must evolve into a more commercially responsive authority capable of supporting responsible investment while enforcing environmental standards.
Industry representatives have also criticised what they describe as limited private-sector involvement in policy execution. Although exporters participated in earlier consultations during the drafting process, they claim their participation diminished during later revisions and preparation of standard operating procedures that will ultimately determine how the policy operates.
The Chamber has warned that policy decisions must be grounded in commercial realities rather than aspirations alone. While Sri Lanka has significant mineral potential, exporters argue that attempts to immediately target advanced industries such as graphene, semiconductor materials, and electric vehicle battery components ignore the realities of global value chains.
They maintain that successful mineral industries develop gradually, beginning with commercially viable extraction and processing before moving towards sophisticated downstream applications.
Past mineral allocation decisions have further damaged investor confidence, according to the Chamber. Exporters cited instances where established processors lost access to deposits to proposals promising advanced manufacturing projects that later failed to materialise.
Licensing uncertainty remains another major obstacle. Companies that have invested millions in exploration, geological surveys, and workforce development are currently facing delays as new procedures are developed. Industry representatives warn that prolonged uncertainty could weaken Sri Lanka’s credibility among international investors.
The Chamber welcomed proposals for a single-window approval system through the GSMB, describing it as a crucial reform if implemented effectively. It also supported moving the GSMB under the Industry and Entrepreneurship Development Ministry, arguing that minerals should be treated as an industrial resource while maintaining strict environmental safeguards.
However, exporters stress that Sri Lanka’s mineral future depends on execution rather than announcements. Without faster approvals, predictable licensing systems, and stronger institutional capacity, the country’s strategic mineral ambitions may remain unrealised.
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