Financial Times

Illicit river sand prices soar with new restrictions on mining
By Quintus Perera
The price of illicit river sand used for construction has shot up with the tightening of restrictions on river bed mining in an effort to minimise the environmental damage it causes.

The Geological Survey and Mines Bureau (GSMB) dismissed reports that river sand mining has been banned, which created a mild panic in the construction industry, but said the restrictions already in force are now being strictly enforced.

N.P. Wijayananda, Director, GSMB said they were trying to promote the use of treated sea sand and that severe restrictions have been imposed in issuing licences for river sand mining after environmental problems it caused became worse owing to over-exploitation in the dry season.

The restrictions have not had the desired effect and has instead resulted in a boom in illegal river sand mining while prices had increased to Rs. 2,000 per cube from around Rs. 1,400 a few months ago.

Those engaged in the illicit trade allegedly bribe sentries at checkpoints to allow their vehicles transporting river sand through. If intercepted in transit the bribe is increased. But if they are prosecuted they would have to pay a fine of Rs. 7,500.

Sand is usually mined from river drainage basins, but the GSMB said there were inadequate resources in the drainage system to meet the demand.

To control damage caused by over-exploitation of river sand, the government has decided to restrict river sand mining in the drainage basins.

The GSMB has curtailed the issuing of licences to mine sand in rivers and now only gives permission after a proper study.

Wijayananda said that one of the worst affected areas was along the Ma Oya running through Kochchikade, Negombo. The Deduru Oya too would be affected the same way very soon.

Sand mining has been a perennial problem in the Kelani River resulting in salt water seeping into the pumping stations that supply water to Colombo.

The GSMB has advised the government to introduce off-shore dredged treated sea sand for the use of the construction industry. Sea sand can be mined without any environmental harm at a depth of 15 metres off shore.

Surath Wickramasinghe, President, Chamber of Construction Industry of Sri Lanka, said that the requirement of sand for the construction industry for the Western Province alone was an estimated 7 to 7.5 million cubic metres a year - or enough sand to fill the Galle Face Green to the height of the Galle Face Hotel. Demand was growing at 40 percent.

He said that a $1 billion project in the pipeline would be hampered if there is a shortage of sand.

As a temporary solution, he suggested the use of sea sand that was collected for the new Colombo-Katunayake super highway, if that project was delayed. This sand has been dumped along 18 kilometres of the highway trace through the Muthurajawela marshlands up to height of about seven or eight feet. Wickramasinghe warned that the entire mound of sand might disappear if the project is delayed further since people were removing it on the sly probably with the connivance of some politicians.

Thai investors to develop St. John's, Manning markets
A Thai business delegation has expressed their interest in developing Colombo's main vegetable sales centre, Manning Market and St. John's fish market, the Commerce Ministry said.

The delegation including Director General for South Asian, Middle East and African Affairs of the Thai Foreign Ministry, Snanchart Devahastin, vice President of Thai Contractor's Association, Viboon Sriprasert and a member of The Federation of Thai Industries, Sopon Wichitrakon, met Commerce and Consumer Affairs Minister Ravi Karunanayake recently and expressed interest in such investments.

Devahastin said that they had visited the Manning and St. John's markets and identified several key areas of infrastructure development, which would be attractive to their developers.

He said Thai investors are willing to introduce Sri Lanka advanced post-harvest, food handling and storage technologies, which are available in their country.

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