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‘SL’s minerals sector is a big one but the govt. has made it a puny one’

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By Hiran H. Senewiratne

Sri Lanka’s minerals sector is a big one but the government has made it a small sector. But it has a huge potential to become one of the country’s major foreign exchange earners. Industry officials were in broad agreement on these points recently at the inauguration in Colombo of the Chamber of Mineral Exporters.

“The mineral sand export industry currently generates around US$ 65 million a year but if we really focus on this sector that amount could be increased to US $ 120 million. Lack of a mineral policy and the non-implementation of a proper survey by any authority on this sector, resulted in the country losing potential export revenue from this area, F. A Farook, Vice Chairman of the CME said.

Farook added: “The practice of giving 12-month mining permits compared to those of 10 to 15 years, as in Australia, would make investors run away. This was a regulatory hurdle that had to be rectified fast.

“Our permits are generally valid for one year. We’ve all been in this sector for the last twenty plus years, so we have some experience on how to get things done, so we will stay.

“But if you are to attract somebody else to come from outside, they will not come.”

CME chairman Amila Jayasinghe said: “As soon as they hear that the mining or environmental license lasts only one year, and that there is a requirement to renew them each year, they will run away, because that is too much of a risk for an investor.

“There should be a proper mineral sands policy and the government should take steps to develop a thrust industry and provide permits for more than one year.

“There is no country in the world with a permit of one year validity. Usually, it is valid for 10 to 15 years. That is something that has to be rectified very soon to attract foreign investments.

“The Australian High Commissioner had recently mentioned that there were companies that were willing to invest but that the investment environment here was not conducive.

“Mineral firms had to deal with a minimum of eight separate state agencies to function on a day-to-day basis. For 15 years Sri Lanka had been talking about a ‘one stop shop’ for approvals, but it has not yet happened.

“There has to be transparency and clarity in how decisions are made, since there are a large number of government agencies involved.

“There should be a level playing field for all and processes should not be made easy for one or two people.

“It was not the availability of raw materials but the accessibility of raw materials that is the key constraint.”

CME Secretary Dr. Sandun Dalpatadu said: “The industry is willing to comply with environmental regulations. Foreign buyers also require mineral extraction to be sustainable. In some cases land had to be restored to the original condition, or if areas are deforested, other areas have to be forested.

“Mining also affects communities and firms and it is a sensitive subject. There are resources in land owned by state agencies for which mineral rights have to be streamlined with a collaborative initiative to generate jobs and also increase exports.”

“In addition to issuing what was probably the shortest duration mining permit in the world, Sri Lanka was probably charging the highest royalty, which was levied as a value added tax at the point of export instead of being imposed on the pit head cost, Chamber sources said.



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Saudi Vision 2030 offers new economic opportunities for Sri Lanka

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International delegates

By Ifham Nizam

Saudi Arabia’s Vision 2030 is creating opportunities for Sri Lanka in trade, investment, renewable energy, tourism and employment while strengthening the longstanding friendship between the two countries.

Led by King Salman bin Abdulaziz Al Saud and Crown Prince and Prime Minister Mohammed bin Salman, the programme aims to diversify Saudi Arabia’s economy, attract international investment, develop new industries and reduce dependence on oil revenues.

Launched in 2016, Vision 2030 is built around three pillars: a vibrant society, a thriving economy and an ambitious nation. Its focus on tourism, technology, logistics, renewable energy, industrial development and private-sector growth aligns with Sri Lanka’s need for foreign investment, stronger exports, energy security and sustainable employment.

Trade and investment opportunities

The establishment of the first Saudi–Sri Lanka Joint Business Council in November 2025 created a platform for businesses to identify investment opportunities, develop partnerships and address trade barriers. Saudi participation in Sri Lanka Expo 2027 could further strengthen commercial ties.

Sri Lanka can expand exports of value-added tea, spices, apparel, rubber products and processed foods to Saudi Arabia. Better distribution networks, packaging and compliance with market standards would help local producers, especially small and medium-sized enterprises, compete more effectively.

Saudi investors could explore Sri Lankan tourism, logistics, food processing, renewable energy and export-oriented manufacturing. The goal should be long-term partnerships that create jobs, transfer technology and improve productivity rather than simply increasing trade.

Renewable energy and green investment

Energy is another promising area. Saudi Arabia’s diversification programme includes major investments in renewable energy and emerging technologies. Partnerships in solar power, battery storage, electricity infrastructure and energy efficiency could help Sri Lanka reduce dependence on imported fossil fuels and improve energy security.

Cooperation could also include technical training and technology transfer. Saudi investment in sustainable tourism, modern agriculture, water management and infrastructure could create further opportunities if projects are commercially viable and supported by transparent regulations.

Vision 2030 seeks to make Saudi Arabia a major international tourism destination while improving services for pilgrims visiting Makkah and Madinah.

Sri Lanka could attract more Saudi visitors through better air connectivity, targeted marketing and partnerships with travel operators. Sri Lankan companies could also supply food, hospitality services and other products to Saudi Arabia’s expanding tourism sector.

Employment remains central to bilateral relations. Sri Lankan workers contribute to the Saudi economy, while their remittances provide valuable foreign exchange at home. As Saudi Arabia develops new industries, Sri Lanka can strengthen vocational training and skills-based recruitment in hospitality, healthcare, construction and technical services. Recognised qualifications, ethical recruitment and worker protection would benefit both countries.

Economic cooperation is complemented by Saudi Arabia’s distinctive spiritual role as custodian of Islam’s two holiest mosques.

Through the Custodian of the Two Holy Mosques’ Guests Programme for Hajj, Umrah and Visit, King Salman approved the hosting, at his personal expense, of 1,000 male and female Umrah performers from around the world in June 2026. Implemented by the Saudi Ministry of Islamic Affairs, Dawah and Guidance, the programme’s first group included 250 guests from 16 Asian countries, who visited Madinah and Makkah and took part in cultural and educational activities.

For those invited, performing Umrah and visiting the holy sites is a deeply meaningful religious experience. The initiative reflects Saudi Arabia’s commitment to facilitating worship and strengthening bonds among Muslim communities. It also complements Vision 2030’s Pilgrim Experience Programme, which aims to improve transport, accommodation, digital services and facilities for pilgrims.

This spiritual and cultural engagement adds a human dimension to commercial ties, helping deepen understanding between the two peoples.

Sri Lanka and Saudi Arabia established diplomatic relations in 1974, and their partnership has grown through trade, employment, development cooperation and diplomacy. The next step is to convert this goodwill into measurable results.

Sri Lanka needs a clear portfolio of viable projects, predictable regulations and efficient procedures to attract Saudi investment. Local businesses must be prepared to meet Saudi market requirements, while the Joint Business Council and Sri Lanka Expo 2027 can help connect investors and entrepreneurs.

The partnership should ultimately be judged by increased exports, productive investment, quality employment and the transfer of skills and technology.

Vision 2030 offers Sri Lanka an opportunity to build a more dynamic relationship with Saudi Arabia by combining commercial cooperation with diplomatic, spiritual and people-to-people ties. Together, the two countries can create lasting benefits for their economies and communities.

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LKR 3 billion HLAB fund launched to help Sri Lankan businesses scale

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Hatch, Lankan Angel Network and BOV Capital join forces, with First Capital Holdings PLC committing LKR 300 million as anchor limited partner in a fund built on a commercial investment case.

Starting a business is difficult. Building one that can grow, compete and endure is harder still.

For Sri Lankan founders, the challenge doesn’t end when they prove their idea works. The next stage demands stronger operations, access to new markets and the capital to pursue opportunities that could transform a promising venture into a sustainable business.

A new initiative aims to help more founders take that next step.

Hatch, Lankan Angel Network (LAN) and BOV Capital have launched HLAB, a collective LKR 3 billion fund designed to back early and growth stage regional companies that are incorporated in Sri Lanka. Announced at the final event of First Capital Startup Nation, organised by Hatch, the initiative brings together three established participants in the country’s startup ecosystem around a shared ambition: expanding access to capital for businesses seeking to grow.

Adding institutional participation to the initiative, First Capital Holdings PLC has committed LKR 300 million as the fund’s anchor limited partner, representing 10% of its total size.

From promising startups to enduring businesses

The transition from an early stage venture to a sustainable, growing company is a defining point in a founder’s journey. Businesses must move beyond establishing their models and begin building the operational strength and market reach needed to pursue larger opportunities.

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JXG’s Wasanthi Stephen makes history as the first female recipient of the CIPM Sri Lanka Lifetime Gold Award

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JXG (Janashakthi Group) celebrates Wasanthi Stephen, Group Chief Human Resources Officer, on becoming the first female recipient of the prestigious CIPM-Baurs Lifetime Gold Award 2026 from the Chartered Institute of Personnel Management (CIPM) Sri Lanka .

JXG (Janashakthi Group) celebrates Wasanthi Stephen, Group Chief Human Resources Officer, on becoming the first female recipient of the prestigious CIPM-Baurs Lifetime Gold Award 2026 from the Chartered Institute of Personnel Management (CIPM) Sri Lanka since the award’s inception. Presented on 14 October 2026, at the opening of the National Human Resource Conference (NHRC) 2026 at Monarch Imperial, Kotte, the award marks a historic milestone for Sri Lanka’s Human Resources profession and a proud moment for JXG.

The highest individual recognition in Sri Lanka’s Human Resource Management sphere, the CIPM Sri Lanka Lifetime Gold Award celebrates individuals whose long-standing contributions have advanced the HR profession at organisational, national, and international levels. It recognises professional excellence, ethical leadership, transformational impact, and a sustained commitment to people and institutions.

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