Business
Sri Lanka’s graphite: A potential player in the global electric vehicle revolution
Malisha Weerasinghe worked as a Project Intern in the Macro, Trade & Competitiveness Policy Unit at IPS. Her research interests include macroeconomic policy, international trade, and development finance. She is currently pursuing a Bachelor’s in Economics and Finance at the University of Hong Kong.
Asanka Wijesinghe is a Research Fellow at IPS with research interests in macroeconomic policy, international trade, labour and health economics. He holds a BSc in Agricultural Technology and Management from the University of Peradeniya, an MS in Agribusiness and Applied Economics from North Dakota State University, and an MS and PhD in Agricultural, Environmental and Development Economics from The Ohio State University. (Talk with Asanka – asanka@ips.lk)
By Malisha Weerasinghe and Dr Asanka Wijesinghe
Sri Lanka has a rich history of mining and exporting graphite, which thrived during the World Wars, hitting 35,000 metric tons in annual exports. The vein graphite produced by Sri Lanka stands out for its remarkable purity, flawless crystal structure, and strong electrical conductivity, making it suitable for various commercial uses. However, in 2023, only 2,792 metric tons were exported, yielding approximately USD 6 million in revenue. The emerging trend towards electromobility on a global scale presents fresh opportunities to revive Sri Lanka’s graphite industry. The newly established Chamber for Mineral Exporters has also emphasised the importance of well-defined policies to harness the untapped potential of the mineral sector.
Graphite in EV Batteries: Opportunities for Sri Lanka
Graphite forms the core anode material in lithium-ion EV batteries, with quantities varying from 10 kg in hybrids to 70 kg in all-electric vehicles. Consequently, the US Department of Energy classifies graphite as a critical mineral. Projections indicate global demand for electric vehicles (EVs) will surge to 40 million units by 2030. Consequently, the demand for lithium-ion batteries for EVs has increased and securing sustainable and reliable critical raw materials (CRMs) has become a policy priority. Purity, extraction sustainability, cost, and geopolitical tensions are vital factors impacting the graphite supply chain. The US industrial and national security policies aim to diversify the sources of CRM for EV batteries- cobalt, nickel, lithium, and graphite- away from China, designated as a “foreign entity of concern” (FEOC).
As the primary graphite producer (Figure 1), China possesses 80% of battery-grade graphite resources and controls more than 50% of the processing capacity. More than 65% of the anode material supplied globally was sourced from six companies in China. Crucially, China holds a notable edge in productivity and cost (Table 1), when exporting natural graphite to major economies. Yet, China’s prominent role as the primary graphite exporter has raised concerns about “supply chain resilience” among key Western importers, especially given their geopolitical aspirations.
The Biden Administration’s ambitious Inflation Reduction Act (IRA) has excluded EV batteries that contain graphite of Chinese origin from lucrative federal subsidies. While this may lead to a relative price increase for EV batteries using Chinese graphite, it also drives up demand for alternatives. Sri Lanka, known for exceptionally high-quality graphite production, could benefit from this shift. With the IRA-induced increase in demand and trade restrictions on China, Sri Lanka’s graphite exports to the US could potentially surge by 65.7% .
Positioning Sri Lanka’s Graphite in Global EV Battery Manufacturing
Sri Lanka’s current graphite production stands at 5,000 metric tons. Yet, according to the Board of Investment, the potential production capacity reaches 450,000 metric tons per year. Given that Sri Lanka is a rare producer of the finest form of natural graphite in an environmentally less harmful manner, the country has an opportunity to tap into the growing global demand for “non-China origin” graphite.
There are several stages of EV battery manufacturing that Sri Lanka may consider joining: exporting natural graphite, exporting processed graphite in the form of electrodes or anodes, exporting lithium-ion cells, and exporting the entire battery pack. For a few reasons, the last two might not be within Sri Lanka’s feasible options.
First, the general organisation of EV manufacturing is that vehicle production plants and battery pack production are located in geographical proximity due to logistic reasons. Second, the US’ renewed tendency to re-shore manufacturing through active industrial policy limits attracting investors to Sri Lanka for producing an entire battery pack or battery cells. Thus, Sri Lanka’s most viable options might be exporting natural graphite or processed electrodes and graphene to the US, Japan, South Korea, and the EU-centred EV manufacturing production network.
Policy Recommendations
Sri Lanka should take proactive measures to leverage global policy shifts and identify potential roles within the EV battery value chain. Thoughtfully crafted industrial and trade strategies will play a significant part in maximising the benefits from Sri Lanka’s graphite resources in the emerging landscape. Sri Lanka’s industrial policy should strive to identify graphite-based products with an existing comparative advantage, link the producers with the end-users, facilitate the acquisition of required technology for value addition, and remove the hurdles for possible mining expansion.
Engaging private sector stakeholders in thorough consultations can help Sri Lanka strategically position itself in the competitive EV manufacturing ecosystem. Concurrently, industrial policy must prioritise environmentally sustainable graphite extraction and processing, leveraging Sri Lanka’s potential as a “non-China origin sustainable graphite” source.
A pivotal trade strategy involves forging critical minerals agreements with the US and EU. A pact with the US enables Sri Lanka to process and export value-added graphite, aligned with IRA subsidy rules. Moreover, a formal accord with major graphite-consuming EV battery manufacturers fosters mining and processing sector investment by eliminating uncertainty.
A burgeoning hub for EV battery production is forming in Thailand and Indonesia, with China, Japan, and South Korea investing in regional EV manufacturing. Agreements among countries possessing critical mineral deposits are increasingly common, motivating Sri Lanka to broaden its proposed trade deals with Thailand, Indonesia, and other East Asian nations into the EV battery value chain. Trade agreements should facilitate investments in graphite mining and the subsequent processing into electrodes and graphene.
Link to original blog: https://www.ips.lk/talkingeconomics/2023/08/22/sri-lankas-graphite-a-potential-player-in-the-global-electric-vehicle-revolution/
Business
Nestlé Lanka celebrates 120 years of ‘Good Food, Good Life’ in Lanka
Nestlé Lanka Limited, the ‘Good Food, Good Life’ company, celebrates 120 years of operations in Sri Lanka this year. Since its founding in 1906, the company has grown into the nation’s leading food and beverage manufacturer, producing over 90% of its locally sold products in Sri Lanka. Guided by its purpose of enhancing quality of life for today and future generations, Nestlé Lanka has touched lives through nutrition, livelihoods, and sustainability.
Over the decades, the company has offered tastier and nutritious choices tailored to local needs, from birth to old age, with micronutrient-fortified products that promote healthier living. Iconic brands such as NESTOMALT and MILO further encourage active and healthy lifestyles through sports sponsorships.
Beyond products, Nestlé Lanka engages communities through partnerships with dairy and coconut farmers, supporting skills development, responsible sourcing, and local livelihoods. Its youth empowerment initiative, Nestlé Needs YOUth, strengthens employability, while collaborations with organisations like BConnected create inclusive work pathways for people with disabilities.
Sustainability is a core focus, with a commitment to achieve net-zero carbon emissions by 2050. Recent steps include a biomass boiler commissioned in 2024 and the use of 100% renewable electricity at the Kurunegala facility. Through these initiatives, Nestlé Lanka continues to deliver on its promise of enriching lives while safeguarding the planet.
Commenting on this milestone, Bernie Stefan, Chairman and Managing Director of Nestlé Lanka said, “Celebrating 120 years in Sri Lanka is a moment of immense pride for all of us at Nestlé. This milestone reflects not only the longevity of our business, but the trust generations of Sri Lankan families have placed in us and the strong partnerships we have built across the country. For over a century, we have been committed to Working Together for Good – contributing meaningfully to the Sri Lankan economy, supporting livelihoods, and positively impacting communities, while consistently providing tasty and nutritious products that consumers love. Through iconic brands such as NESTOMALT, MILO, MAGGI to name a few, we have been part of everyday moments in Sri Lankan homes, helping nourish families and support healthier, more active lifestyles. As we look ahead, we remain firmly committed to continuing this journey with purpose, responsibility and care, enriching Sri Lankan lives every single day.”
Business
Sampath Bank and Apartner Bring Digital Payments to Sri Lanka’s Growing Condominium Sector
Sri Lanka’s condominium landscape continues to expand at pace, reshaping urban living across the country, yet many residential communities still rely on manual payment methods that slow down collections, delay reconciliations and limit financial visibility for both residents and management corporations.
Responding to this growing gap, Sampath Bank PLC has partnered with Apartner (Pvt) Ltd to digitise condominium payments in Sri Lanka, introducing a secure, real-time payment and settlement framework designed to support smarter, more efficient apartment living. The partnership integrates Visa’s Cybersource payment gateway with Sampath Bank’s API Manager, enabling seamless digital payment collection alongside instant outward settlements and reconciliations.
Speaking on the collaboration, Chirath Samarasekara, Head of Card Centre at Sampath Bank, stated, “Condominium living is becoming a defining feature of modern Sri Lanka and the financial infrastructure that supports it must evolve accordingly. Through Visa’s Cybersource payment gateway and our API Manager, this partnership enables real-time settlements and reconciliations that bring greater transparency, control and predictability to condominium payments while offering residents a secure and convenient digital experience.”
Deshan Dias Bandaranayake, Co-Founder and Chief Executive Officer of Apartner, commented, “This partnership with Sampath Bank allows us to remove one of the biggest operational pain points faced by condominium communities. Real-time payment visibility and automated reconciliation give management corporations confidence in their cash flows while residents gain convenience, security and peace of mind through a platform built for everyday living.”
Business
A lifetime of tickets: Kalawana retiree preserves a 76-year long lottery trail
For many Sri Lankans, buying a lottery ticket is a daily ritual. Some do it out of habit; others try their luck from time to time. Morning crowds gathered around lottery kiosks across the country are testimony to the enduring appeal of the small slip of paper that promises fortune.
But in the quiet village of Dolahena in Kalawana lives a man whose relationship with the lottery stretches far beyond hope of a windfall.
At 88, retired postal worker E. M. D. Bandara Ekanayake has spent more than seven decades buying lottery tickets — and, more remarkably, preserving them. His collection, which dates back to the early years of organized lotteries in Sri Lanka, may well be one of the most extensive personal archives of lottery tickets in the country.
“I started buying lottery tickets in 1962, the year the National Lottery Board was established,” Bandara told the Sunday Island. “At that time a ticket cost only 50 cents, and the top prize was about one lakh of rupees.”
His fascination with lotteries, however, predates the National Lottery Board itself. Bandara recalls purchasing his first ticket in 1959 when a lottery was held in connection with an industrial exhibition.
“From then until today, I have been buying five tickets at a time,” he said. “For about 76 years I have continued this habit.”
Unlike most lottery buyers who discard their tickets once the draw is over, Bandara carefully preserved every ticket he purchased. As a result, he now possesses lottery tickets issued by both the National Lottery Board and the Development Lotteries Board from 1962 to the present.
“I don’t think anyone else has such a collection,” he said with a quiet smile.
Ironically, his decades-long participation has not brought him extraordinary winnings. “Apart from small prizes, the biggest amount I have ever won is Rs. 10,000,” he admitted.
Yet Bandara insists that winning has never been his primary motivation.
“I buy lottery tickets with great interest and enthusiasm, but not because I expect to win,” he said. “The lottery boards contribute a great deal to the development of this country. Funds raised through lotteries support education, health and other development work. I feel a deep sense of satisfaction knowing that I too contribute, even in a small way.”
His dedication to buying tickets has endured despite the difficulties he once faced in obtaining them.
“In the early days there were no lottery sales outlets in the Kalawana area,” Bandara recalled. “The only place we could buy them was at Sinnaiah Stores in Nivitigala. I used to travel by bus to buy the tickets and bring them back. Sometimes I would send someone else to buy them for me.”
Over time, lottery sales expanded to Kalawana itself. Bandara remembers that a trader named P. D. T. Lathpadura Mudalali began selling lottery tickets at the Ranasinghe Hotel, making it easier for locals like him to buy them.
From then on, Bandara purchased his tickets locally, but the practice of carefully preserving them remained unchanged.
His passion for collecting does not stop with lottery tickets. Bandara has also maintained an extensive collection of newspapers over the years. Even bus tickets from his journeys have been preserved alongside his treasured lottery slips.
The unusual collection recently drew the attention of officials from the National Lottery Board, who visited Bandara’s home bearing gifts after learning about his decades-long dedication.
For Bandara, however, the recognition is secondary to a larger sense of purpose.
“I will continue buying lottery tickets as long as I live,” he said. “At the same time, I try to help others and engage in social service whenever I can.”
His commitment to community welfare is not merely rhetorical. Using his own funds, Bandara has already built a community hall for the benefit of residents in his village.
“I hope to continue doing social service in the future as well,” he said.
In an era when lotteries are often associated with dreams of instant wealth, Bandara’s story offers a different perspective — one of quiet dedication, civic-mindedness and personal discipline.
For him, the value of a lottery ticket lies not in the promise of riches but in the small contribution it makes towards the collective good.
And after 76 years, that belief remains unshaken.
By Upendra Priyankara Jathungama
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