Sri Lanka introduces new guidelines for mineral resource mining and trade

Sri Lanka is implementing a new circular to streamline the extraction, transportation, and sale of mineral resources, including gravel, sand, soil, ballast, and clay. The initiative aims to establish a more organized and regulated industry.

Minister of Industries and Enterprise Development, Sunil Hettiarachchi, announced the new directive. It incorporates a code of practice previously issued by a presidential task force in 2021. The ministry plans to inform district secretaries, development committee chairmen, members of parliament, and relevant officials about the circular's implementation to address potential practical challenges.

A key aspect of the new regulations is the introduction of a standardized fee structure. Currently, charges for these mineral resources vary significantly across districts. The ministry proposes to consolidate these diverse fees into a single, uniform system. This unified approach is intended to simplify the payment process for license holders, allowing them to pay all required fees in one place rather than to multiple agencies.

The proposed unified fee system is slated to take effect on September 1, 2026. Discussions are underway with relevant state institutions to finalize the common rates. However, the ministry is also examining legal and administrative constraints, particularly concerning fees collected by local government authorities, to determine how they can be integrated into the central government's unified collection mechanism.

Parliamentary representatives have also raised various issues faced by stakeholders in the industrial sector with the Minister. The ministry's efforts to regulate the mineral sector aim to bring greater transparency and efficiency to the industry, while also considering the practicalities of fee collection and stakeholder concerns.