The government has decided to temporarily suspend the issuance of licenses for heavy mineral exploration and mining until the new National Mineral Policy is approved and implemented, Industry and Entrepreneurship Development Minister Sunil Handunneththi announced on Thursday.
The suspension will remain in effect until Cabinet approval is obtained, relevant guidelines are gazetted, and the policy is presented to Parliament. It applies to all heavy mineral exploration and mining licenses, excluding minerals required for housing and construction activities, such as sand, soil, and gravel.
At a special media briefing held at the Ministry of Industry and Entrepreneurship Development, Minister Handunneththi said the suspension specifically affects licenses for heavy minerals, including ilmenite, rutile, zircon, and garnet, until the new policy framework is enacted.
He explained that the National Mineral Policy has been formulated to ensure maximum national benefit from the country’s mineral resources, standardize the licensing process, improve transparency, and prevent decisions based on individual discretion. The policy document has already been submitted to the Cabinet, and the regulations are expected to be gazetted and presented to Parliament by the end of next month.
Addressing social media reports about mineral removal in the Mirippawila area, the Minister clarified that no private entity has been granted approval for mineral extraction under the current government. Permissions issued in September 2024 were limited to transportation-related activities and did not constitute exploration or mining licenses.
He noted that the country has previously suffered significant losses due to illegal mineral extraction facilitated by political influence, with numerous court cases pending over unpaid royalties and unlawful mining.
To prevent future violations, Cabinet approval has been granted to establish a special enforcement unit to strengthen monitoring of mining activities. Senior officials from the Ministry of Industry and Entrepreneurship Development and the Geological Survey and Mines Bureau attended the briefing.
