News
India eyes dominance in Lanka’s minerals sector
View(s):- High-level team here to explore cooperation; GSMB and Environment
Ministry say they know nothing about MoU
By Namini Wijedasa
Indian mining companies led by India’s Mines Ministry visited Sri Lanka this week to look at potential collaborations in the mines and minerals sector even as the Geological Survey and Mines Bureau (GSMB)—the primary government agency responsible for managing and conserving Sri Lanka’s mineral resources—and the Environment Ministry, under which it falls, maintained they knew nothing about a memorandum of understanding proposed to be signed with India on “Cooperation in the Field of Geology and Mineral Resources”.
“The purpose of the visit was to explore investment and collaboration opportunities, promote technical cooperation in advanced mining technologies, and discuss joint initiatives for value addition in the mineral sector,” a statement from the Indian High Commission said.
“The possibility of mineral exploration on a Government-to-Government (G2G) basis was also discussed, with the Geological Survey of India (GSI) expressing its interest in conducting mineral assessments in Sri Lanka,” the statement continued.
“Additionally, Sri Lanka requested India to encourage Indian companies to participate in the exploration and development of its beach sand and graphite resources.”
Among others, the delegation met Industries Minister Sunil Handunneththi, chairpersons of Sri Lankan state-owned enterprises in the mineral sector, the GSMB and the Board of Investment.
Since 2022, the GSMB has issued exploration licences to companies with Indian connections covering around 230 square kilometres of identified exploration tenements, official data obtained by the Sunday Times show. As such, these entities hold the largest extents of land that GSMB has recently issued exploration permits for. Australia-connected companies follow at 52 square kilometres.
The GSMB is under the purview of the Environment Ministry. However, Sri Lanka’s discussions with India on possible collaborations in mines and minerals are led by Minister Handunnetti, who visited India in February 2025 and met the Union Minister of State for Coal and Mines, Satish Chandra Dubey.
A media release from India’s Public Information Bureau (PIB) subsequently said, “Their discussions focused on “fostering bilateral cooperation in mineral exploration and mining, particularly in securing critical minerals for both nations’ economic and industrial growth.” A key focus was placed on Sri Lanka’s vast graphite and beach sand mineral resources, it said.
Also discussed was the finalisation of a memorandum of understanding related to cooperation in geology and mineral resources between India’s Mines Ministry and Sri Lanka’s GSMB, the statement.
Despite heightened bilateral interest, however, officials of the GSMB and Sri Lanka’s Environment Ministry—the relevant agencies—said they had no knowledge of what this proposed MoU would contain.
GSMB Chairman J.M.S.N. Jayasinghe said he had not seen the MoU. Acting Director General D.P.R. Weerakoon initially told the Sunday Times she had it (but that she hadn’t read it). However, after Mr. Jayasinghe said he had not received it, he called back to convey that the DG denies saying she had it. Other GSMB officials—the subject specialists—are also in the dark about this agreement.
Deputy Environment Minister Anton Jayakodi said he had no knowledge of an MoU. Asked about the division of duties and functions, he said the deployment of minerals in manufacturing industries—including discussions pertaining to how minerals could be used in production—could fall under the purview of the Industries Ministry. Exploration (to determine such things as quantity of resources) and mining, he said, were the remit of institutions under the Environment Ministry.
The PIB statement issued in February, however, clearly underscored the importance of strengthening collaboration in “mineral exploration and mining opportunities for Indian companies in Sri Lanka”. It quoted India’s Mines Minister as saying their “National Critical Mineral Mission” aimed to secure “a steady supply of essential raw materials like lithium, graphite, nickel, cobalt and copper” to meet their renewable energy targets. India was also “actively working towards” (among other things) “forging international partnerships and encouraging Indian companies to acquire mineral assets globally”.
In March 2025, there was a virtual meeting between the secretary of India’s Ministry of Mines and the secretary of Sri Lanka’s Ministry of Industries.
During its visit this week, the Indian delegation went on site visits “to key mining locations” in Sri Lanka, “gaining valuable insights into the operational landscape and exploring areas for future collaboration”, the Indian High Commission said.
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