Aruwakkalu’s hidden wealth sparks high-stakes mineral revolution
The Aruwakkalu limestone deposit in Puttalam, usually recognised as the backbone of Sri Lanka’s cement industry, is currently undergoing a significant strategic transformation.
While its Miocene limestone has long been the primary focus for industrial excavation, the government has recently turned toward a more sophisticated, multi-resource extraction model, a senior official of the Ministry of Industries told the Sunday Times Business.
This transformation has been recently cemented by the adoption of a groundbreaking proposal by the Cabinet of Ministers that requires the submission of Expressions of Interest (EOI) in separating valuable mineral sands such as Ilmenite, Rutile, and Zircon from the topsoil layer.
This strategy represents a significant divergence from the long-standing approach that viewed the topsoil as merely a waste product.
Under the guidelines of the National Mineral Policy 2026, the government has embraced the principle of “value addition” through investments, according to him. Nevertheless, this stage of exploration is not without its challenges.
There are ongoing CID investigations into previous illegal mining activities and a complex legal landscape. It is ranging from archaeological preservation of fossil-rich zones to concerns over the seismic impact of blasting near the national sanitary landfill.
This has made the current status of Aruwakkalu a critical junction for Sri Lanka’s environmental and economic policy. At present, the Aruwakkalu site is not only a source of minerals, but it has also become an ultimate test of whether the government can strike a balance between industry needs and sustainable and technologically innovative management of mineral resources.
“A system will be put in place to ensure that all particles of Ilmenite and Rutile are accounted for within a transparent and competitive manner where national interests come first,” a senior official of the Geological Survey and Mines Bureau (GSMB) said.
The GSMB is the sole institution authorised to issue mining, exploration, transport, and trading licenses. This includes monitoring the Industrial Mining Licenses (IML). The Bureau conducts systematic core drilling and mineral surveys to assess the commercial viability of deposits, such as the limestone and mineral sands at Aruwakkalu.
A dedicated investigation and inspection unit operates under the GSMB to prevent illegal mining a major issue recently at Aruwakkalu where unauthorized ilmenite extraction occurred.
As of late 2025 and into 2026, the Ministry of Environment has suspended mining licences in Aruwakkalu due to illegal ilmenite mining operations in archaeologically sensitive zones. No new licences are to be granted until a comprehensive environmental assessment is finalised, he disclosed.
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