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Corruption and red tape keep out substantial foreign investment into mining industry

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Chirantha Weerawardena

Sri Lanka had failed to attract substantial foreign investment in the mining industry during the last 50 years mainly due to the high sovereign risks associated with Sri Lanka, Chirantha Weerawardena, a mining engineer, said during a seminar, titled ‘Blueprint for Developing a Sustainable Sri Lankan Mining Industry by Attracting Foreign Investment,’ organised by the Institution of Engineers Sri Lanka (IESL) recently.

Eng. Weerawardena said that mining was a long term investment and investors in the mining sector werevery concerned about the political and economic stability of a country. “They are worried about abrupt changes to mining related law and regulations, significant and abrupt changes to tax and royalty regimes, the lack of rule of law which can result in losing mining rights without valid reasons and the lack of an independent mechanism for appeal or arbitration against the regulator’s or minister’s decisions.”

Eng. Weerawardena said for a mining company exploration is a high risk investment because significant funds need to be spent before hitting an ‘economic deposit.’ Given that mining is an investment spanning 10 to 40 years, once an investment is made, a mining company is “trapped” as it can’t leave easily.

“A few years ago a London Stock Exchange registered company spent about 16 million US dollars to carry out initial exploration of three sites they acquired in Sri Lanka. Then the Geological Survey & Mines Bureau (GSMB) suspended the licence citing an issue with the local ownership requirement of the mining licence holder. In Sri Lanka there is a rule saying an exploration license can be taken by anyone, but the mining licence can be only taken by a company with majority local ownership. The company went to court. I have no problem with this law, but the GSMB should have brought this up at the start. And then the licences were reinstated by the Secretary to the Ministry of Environment under statutory appeal process. Now the issue has been sorted out and the company signed an MOU with the LB group in China – the second largest company in the world in TIO pigment manufacturing, who will invest 81 million dollars to build a mining separation plant at Oluvil,” he said.

That had been one of the two serious investments in the mining sector in the last 50 years, Weerawardena said, adding that the above case demonstrated that Sri Lankan officials and politicians were not interested in facilitating foreign investments and sometimes went of their way to make life difficult for investors. Such actions mainly stem from corruption, especially when they want kickbacks.

Weerawardena said resource nationalism, which was the tendency of people and governments to assert control over natural resources located in their territory, was also tied with sovereign risk. However, resource nationalism is based on several valid and good points and this is not inherently bad.

“However, we must realise politicians and some ‘experts’ sometimes overestimate in-situ value of mineral deposits for various reasons. There is also a widespread anti-mining sentiment among the people as well.

“We have to also be scientific when we estimate the in-situ value of deposits. There are various costs associated with extracting the minerals in the ground. There are ship loading costs, transport costs, processing costs, mining costs, brownfield drilling cost, overheads and amortisation of capital. We have to take these costs into consideration before we value the mineral deposits we have,” he said.

He added that mining is an economic multiplier. In Australia, each mining job creates at least four others in the form of support services.

However, mining can also have a negative impact if a country does not manage its operations properly, he said.

“You can end up degrading a non-renewable resource without much to show. This has happened in Latin American and African countries. Because mining is so profitable, it can lead to corruption and social disharmony among stakeholders and communities. The worst-case scenario is that there can be foreign interference in the country. If we understand both the positives and negatives of mining, the country can go through the correct process to harness the benefits of mining.”

He added that Sri Lanka is a country with high sovereignty risk. Despite opening up the economy in 1977 and although Sri Lanka has several world-class deposits, the country has only got a few mining investments because of this.

“We need to understand that mining companies prefer stable policies. They can’t be lured by promises of cheap minerals. You also need less corruption and red tape. Then mining companies will come to Sri Lanka,” he said. (RK)



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Navy renders assistance to bring injured fisherman ashore

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The Sri Lanka Navy demonstrated its commitment to maritime safety by  assisting  to bring ashore an injured fisherman and rushing him for urgent medical attention on Thursday (28 May 2026)

The fisherman was aboard a local multiday fishing trawler off the south coast and the Maritime Rescue Coordination Centre (MRCC) Colombo coordinated the retrieval of the fisherman.

Reportedly, the multi-day fishing trawler had departed from the Kudawella Fisheries  Harbour on 05th  May with 06 fishermen. While engaged in fishing activities approximately 730 nautical miles off the south coast, one of the crew members suffered an injury.

Following a formal request for assistance, through MRCC Colombo, the Merchant Vessel ‘Dong Fang Wei Ye’ sailing in the nearby sea area had been informed to retrieve the patient. In a rapid response, the Navy dispatched a craft attached to the Southern Naval Command to the designated sea area where the Merchant Vessel was stationed to transfer the fisherman.

Upon transferring the injured fisherman from the Merchant Vessel, naval personnel provided essential first aid to the injured person before swiftly bringing him to the Galle Harbour And safely transferred him to the National Hospital, Galle.

 

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Applications called to recruit 400 public officers as Digital Champions for the Public Impact Champions Network

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As a key component of the Government’s Digital Economy Plan aimed at enhancing the quality and efficiency of the public sector system, an awareness programme for coordinating executive officers of public institutions was held on Wednesday (27) at the Information and Communication Technology Agency of Sri Lanka (ICTA). The programme marked the first step towards establishing the “Public Impact Champions Network” (PIC-NET), an institutional pilot network intended to drive the optimisation of public services through the digitalisation of public institutions.

During the programme, heads of institutions were informed to submit applications from officers currently serving in public institutions who possess the capability and capacity to represent the “Champions Corps” in spearheading digital transformation, in accordance with Circular PS/ADA/Circular/3/2026.

Chairman of the Information and Communication Technology Agency of Sri Lanka and Senior Adviser to the President on the Digital Economy, Dr. Hans Wijayasuriya, stated that the Government aims to increase Sri Lanka’s digitally empowered economy from its current level of 3% to 12% by 2030.

He further explained that the development of the digital economy is a process aimed at improving efficiency, quality and revenue generation through the use of communication technology in economic activities.

Pointing out how the digital economy has expanded in every developed state, Dr Hans Wijayasuriya noted that the slow growth of the digital economy remains a serious challenge faced by Third World countries. However, he stated that India is currently achieving remarkable progress in digital economic development and that elevating Sri Lanka’s digital economy to a prominent level alongside such developments is one of the Government’s principal objectives.

Dr Hans Wijayasuriya also pointed out that this digital economic growth must take place simultaneously across nearly all public institutions. Accordingly, within the next three years, the coordination and management of transactions among public institutions are expected to function in a fully networked manner similar to banking operations.

He further emphasised that the support of both public institutions and the country’s citizens as a whole would be crucial for the successful implementation of this extensive technological transformation across all public institutions over the next few years.

Ranil Peiris of the Department of Information Technology at the University of Sri Jayewardenepura briefed those present on the foundation of the PIC-NET programme and its future plans.

He explained that, in the future, citizens would be able to access services such as applying for passports and renewing licences entirely online from their homes. He further pointed out that this system would eliminate the need for citizens to repeatedly provide the same information.

Representatives of KPMG also presented the future action plan relating to the selection and training of officers.

Representing the Presidential Secretariat, Sameera Wickremasinghe further briefed participants on the mechanism for calling applications.

The necessary guidance and coordination support for this public sector digitalisation programme are being provided with the support of the Presidential Secretariat, the Ministry of Digital Economy, GovTech Sri Lanka and the Asian Development Bank.

(PMD)

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Mother-in-law of Indian bride whose death set off media frenzy arrested

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Twisha Sharma was found dead in her marital home on 12 May [BBC]

India’s top anti-crime agency has arrested the mother-in-law of an Indian woman whose death has sparked conflicting claims of murder and suicide.

Twisha Sharma’s parents and siblings have alleged that she was tortured by her lawyer husband, Samarth Singh, and his mother – retired judge Giribala Singh – over dowry demands and that she was murdered, allegations they have denied.

The 33-year-old model and actor had been married for just five months when she was found dead in her matrimonial home in Madhya Pradesh state’s Bhopal city on 12 May.

On Thursday, the Central Bureau of Investigation (CBI) arrested Giribala Singh after questioning her for several hours.

The Madhya Pradesh High Court had earlier cancelled her anticipatory bail, finding that a trial court had ignored key evidence and witness testimony.

Following Twisha’s death, the police had registered a case of dowry death against the Singhs. Earlier this week, the investigation was taken over by the CBI.

Twisha’s death has made national headlines and has once against brought the issue of dowry deaths into the spotlight. Every year, thousands of women are murdered for bringing in insufficient dowries, even though the practice was banned in 1961.

The case has drawn significant attention because of the family’s prominence. Twisha was a former beauty pageant winner and actor, while her husband and mother-in-law were lawyers.

Twisha’s parents allege that dowry-related harassment began soon after her marriage to Singh. They also claim that when she became pregnant, Singh and his mother accused her of infidelity and forced her to terminate the pregnancy.

The Singhs deny the allegations, saying Twisha had mental health issues and took her own life. They also contend that the decision to terminate the pregnancy was hers.

Singh is currently in police custody. He had reportedly absconded after Twisha’s death and was arrested by police in Jabalpur on 22 May.

Twisha was cremated on Sunday after a second autopsy. Her family had alleged that the first post-mortem was flawed and accused the police of a cover-up, a charge the police denied.

[BBC]

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