COLOMBO, June 12 (Xinhua) -- Sri Lanka has introduced a new policy framework aimed at increasing earnings from its mineral resources by requiring value addition before export, ending the shipment of minerals in raw form.
The revised National Mineral Policy, which came into effect on Thursday, is the first major update to the country's mineral policy in 27 years. It covers the full chain of activity in the sector, from exploration and mining to processing and value-added production.
The move is intended to address long-standing concerns that Sri Lanka has earned only limited returns from mineral deposits that carry higher commercial value after processing. Minerals such as zircon, garnet, silica, quartz and titanium have been among the resources exported without sufficient domestic processing, according to the government.
Minister of Industry and Entrepreneurship Development Sunil Handunneththi said that the country had lost opportunities to generate stronger foreign exchange earnings because many mineral resources had historically been shipped as raw materials.
He said a ton of some minerals exported for about 2,000 U.S. dollars could command a much higher value if processed before export, adding that the benefit of such value addition had not been adequately captured by the national economy.
The policy has received cabinet approval and has been presented to the parliament, the minister said. ■
