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Sri Lanka’s graphite: A potential player in the global electric vehicle revolution

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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/



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SLT MOBITEL and Fintelex empower farmers with the launch of Yaya Agro App

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From left to right – Supipi Nawarathne, Head, Department of Food Technology, UCIARS, Dr. Nisansala Widanapathirana, Head, Department of Agro Technology, UCIARS, Professor Champathi Gunathilake, Director, UCIARS, Dr. Nath Dharmasena, CEO, Fintelex Pvt Ltd, Sudharshana Geeganage, COO, Mobitel, Professor Indika Mahesh Karunathilaka, Vice Chancellor, University of Colombo, Pradeep Arunasiri, Consultant Agronomist – Digital Inclusion, Fintelex Pvt Ltd, and Madura Hewage, Senior Manager – VAS, Mobitel, at the launch of Yaya Agro.

SLT‑MOBITEL Mobile, in collaboration with Fintelex (Pvt) Ltd, has launched ‘Yaya Agro’, an exclusive all‑in‑one smart agriculture app designed to empower Sri Lankan farmers with the tools they need to grow smarter, safer, and more sustainably.

Yaya Agro represents a new era of digital farming in Sri Lanka combining technology, expert knowledge, and community empowerment to provide farmers the confidence to make smarter decisions, improve productivity, and build a sustainable future.

Developed with support from GIZ and Hatch and validated by leading academic and professional institutions including the University of Colombo, Institute for Agrotechnology and Rural Sciences, and the Sri Lanka Red Cross Society, Yaya Agro combines agricultural expertise, real‑time weather updates, first aid support, and AI‑powered assistance into a single, easy‑to‑use platform.

The launch of Yaya Agro positions SLT‑MOBITEL as an innovative, inclusive, and collaborative technology leader. Partnering technology and academic institutions, the company extends its role outside the sector into agriculture, empowering farmers with AI‑driven tools, multilingual access, and market connectivity. The initiative also strengthens SLT‑MOBITEL’s image as a champion of digital empowerment and sustainable development in Sri Lanka.

Functioning as a comprehensive digital companion, Yaya Agro is positioned as a digital farming companion, bringing precision agriculture, real‑time support, and market access to the fingertips of every Sri Lankan farmer.

Whether managing a small home garden or a large commercial farm, the app equips farmers with vital insights to improve crop yield, reduce risks, and connect directly with buyers through the integrated online marketplace.

Yaya Agro offers farmers daily crop information with expert tips on management, pest control, and best practices, all validated by the University of Colombo. It provides accurate, location‑based weather forecasts to help plan farming activities more effectively. The app also delivers life‑saving first aid tutorials and safety information verified by the Sri Lanka Red Cross Society, ensuring farmers are prepared for emergencies. With the AI chatbot assistant, farmers can access instant, personalized advice around the clock, with smart notifications delivering timely alerts and reminders tailored to crop cycles.

To make learning inclusive and accessible, Yaya Agro is available in Sinhala, Tamil, and English, offering interactive educational content such as videos, voice guides, and infographics. The app also integrates an online marketplace, developed in partnership with GIZ and Hatch, enabling farmers to connect directly with buyers and expand their reach. (SLT‑MOBITEL )

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Kegalle sets up District Planning Committee to rein-in development spending under IMF-backed reforms

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Dr. Patabendi addressing officials.

As Sri Lanka presses ahead with IMF-backed fiscal and governance reforms, the Kegalle District Planning Committee (DPC) was formally established yesterday as a standing sub-committee of the District Coordinating Committee (DCC), in a move aimed at tightening control over public investment, reducing duplication and strengthening monitoring at district level.

The committee was constituted under Home Affairs Circular No. 03/2025 issued by the Ministry of Public Administration, Provincial Councils and Local Government, and was inaugurated at the Kegalle District Secretariat auditorium under the leadership of Environment Minister and DCC Co-Chair Dr. Dhammika Patabendi and District Secretary H.M.J.M. Herath.

Addressing officials, Dr. Patabendi said the new structure directly responds to long-standing weaknesses in public investment management that have come under scrutiny during Sri Lanka’s engagement with the International Monetary Fund.

“Under the IMF programme, we cannot afford fragmented planning, overlapping projects or weak monitoring. This committee is about discipline—ensuring that limited public funds are allocated according to national priorities and deliver measurable outcomes,” Dr. Patabendi said.

He stressed that district-level planning must now align with national fiscal consolidation goals, with a stronger emphasis on value-for-money, results-based implementation and accountability.

The District Planning Committee will function as a permanent sub-committee of the DCC, chaired by the district’s Cabinet Minister, with the District Secretary serving as Secretary and the Director of Planning as Convener. Members include officials from district-level price and food committees and heads of government institutions or their nominees.

A central mandate of the committee is the preparation of an Annual Integrated District Development Plan, covering all funding sources—including foreign-funded and donor-supported projects—for approval by the District Coordinating Committee.

Officials said this would help rationalise project selection, prioritise urgent district needs and prevent the duplication of monitoring and evaluation systems, a key concern raised in public investment reviews under the IMF programme.

Dr. Patabendi noted that better coordination of state, private and non-state sector investments at district level would also support macro-level reform objectives by improving spending efficiency without increasing fiscal pressure.

“Fiscal adjustment does not mean stopping development. It means doing development better—through planning, coordination and proper evaluation,” he said.

The committee will oversee the operational rollout of DCC-approved projects, provide advisory support to implementing agencies, and monitor whether projects are delivered within approved timeframes and achieve stated targets.

Progress reports will be submitted to the Presidential Secretariat, Ministry of Public Administration, Ministry of Finance and the District Coordinating Committee, strengthening upward accountability.

At yesterday’s meeting, officials reviewed development proposals linked to the 2026 Budget, with focus on education, health, agriculture, infrastructure, industry, environment and tourism—sectors seen as critical for growth and social protection during the reform period.

Implementation challenges faced by projects carried out in 2025 across several Divisional Secretariat areas were also examined, with discussions centred on resolving bottlenecks early in 2026 and aligning future investments with the district’s five-year development plan.

Senior provincial and district officials, Members of Parliament from Kegalle, local authority heads and divisional secretaries attended the meeting.

Dr. Patabendi said the establishment of the District Planning Committee marked an important step towards embedding IMF-aligned public financial management reforms at the grassroots level, ensuring that development spending contributes to economic recovery while safeguarding fiscal sustainability.

By Ifham Nizam

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Allianz commits €200,000 for post flood recovery in Sri Lanka, part of €600,000 regional relief for Southeast Asia

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Allianz SE (Headquartered in Munich, Germany) announced that it is donating €200,000 to support disaster relief efforts in Sri Lanka. In addition, Allianz SE is also extending its support to Thailand and Indonesia, contributing a further €400,000 to aid disaster relief across Southeast Asia. Torrential rainfalls have triggered severe flooding and landslides across Southeast Asia, leaving more than 1,100 people dead in a week of devastation and complicating rescue efforts for hundreds still missing. Allianz is deeply rooted with local entities in the three countries and serving millions of customers across Asia. By supporting the affected people and communities, Allianz acts on its promise to secure the future of its stakeholders in times of need.

Allianz SE will allocate €100,000 to the Sri Lanka Red Cross Society (SLRCS) to deliver immediate assistance to those most affected and €100,000 will also be provided for post-disaster support, implemented in collaboration with Allianz Insurance Lanka Limited and selected local partners, focusing on disaster prevention and climate resilience, helping communities rebuild and strengthen their preparedness against future events.

Renate Wagner, Member of the Board of Management of Allianz SE, responsible for Asia Pacific, Mergers & Acquisitions, People and Cultures says:

“At Allianz, we stand with the people and communities affected by the severe floods and landslides across Southeast Asia. Through immediate relief and long-term resilience support, we aim to help families recover, strengthen local communities, and better prepare for future climate-related events.”

Anusha Thavarajah, Regional Chief Executive Officer, Allianz Asia Pacific adds:

“Across Indonesia, Thailand and Sri Lanka, many families and communities are facing significant loss and disruption. In moments like these, Allianz stands alongside them. Asia Pacific is home to our people, our customers, and the communities we serve, and we remain deeply committed to the region. Our immediate focus is on providing relief where it is most needed, while also supporting communities to rebuild and strengthen resilience, so those most affected can move forward with confidence.”

Allianz is fully dedicated to Asia and its people. It represents a strategic growth region for Allianz Group, which already has established strong market positions throughout Southeast Asia. Besides Indonesia, Thailand and Sri Lanka, Allianz is present with various business segments in China, India, Malaysia and Singapore, among others.

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