Development – not at the cost of people or the environment



  • Environmentalists argue that at least 12 sites have already been earmarked for mineral exploration along the country’s coastline

Sri Lanka’s updated National Mineral Policy mandates all mineral resources to undergo local value addition before they can be exported. The policy also prevents the export of unprocessed raw materials to maximise the country’s economic and foreign exchange earnings. But mineral exploration in Sri Lanka had been a controversial issue – one that many believe is a shady business,  and an industry that poses detrimental impacts on people and environment. 

Environmentalists argue that at least 12 sites have already been earmarked for mineral exploration along the country’s coastline. Sri Lanka’s mineral exploration history dates back to the times of the British. From exploring high-purity vein graphite to mineral sands such as ilmenite and rutile to gemstones, the sector has evolved into a multi-billion dollar export opportunity. This is what the government is planning to maximise on with its new mineral policy. 

Issuance of mineral exploration licenses came under the purview of the Geological Survey and Mines Bureau (GSMB). But during previous regimes, environmentalists raised concerns regarding the validity of issuing these licenses, whether the companies involved were conducting Environmental Impact Assessments (EIAs) and consulting people in respective areas prior to carrying out these activities. Speculation was rife whether these exploration licenses were automatically transferred into excavation licenses. 

According to Industry and Entrepreneurship Development Minister Sunil Handunneththi, over 400 exploration licenses have been issued since 1993 out of which only 28 had advanced into mining operations. But out of them, only 12 remain active today. 

It is in this backdrop that Sri Lanka was identified as a ‘hotspot’ for ilmenite mining along the country’s north-eastern and southern coastline. Exploration activities came under much scrutiny from people living in these areas. They claimed that their lands were being exploited in the guise of carrying out these activities, while depriving them of drinking water. Mineral exploration, if not done in a sustainable manner, could affect groundwater through exploratory drilling and localised water extraction. Impacts include temporary lowering of local water tables, creation of new pathways that mix different aquifers, and a minor risk of contamination from drilling fluids. 

The process of extracting ilmenite includes digging holes to a depth of six to seven feet. But according to residents,  these holes are usually not filled by sand once the extractions are completed, leading to unsafe environments. This is why people and interest groups called for proper regulation. 

In the past, many of these activities were carried out by respective companies in an ad hoc manner. But now, under the new mineral policy, all exploration activities should be transferred to the GSMB. Under the new system, the GSMB will carry out exploration, publish geological data and subsequently invite investors to participate in commercially viable projects. 

Due to issues such as coastal erosion, communities living along the country’s coastline are already becoming vulnerable. Impact of coastal erosion is already visible in places such as Mannar Island. People are complaining of having to purchase water as they can no longer drink muddy water from the wells. Altered aquatic systems and disturbances caused to bird migratory routes could cause lasting impacts on sensitive ecosystems in these areas. 

Those who raise these concerns do not oppose development. They are very much in favor of development,  but the country has already experienced the downside of shortsighted policies. Environmentalists have questioned whether a country such as ours could bear the burden of using toxic chemicals to do value addition on raw materials. These are practical concerns that are being raised. 

It is a positive sign that the government is preparing a favorable environment to attract investors and investments. Already, many foreign companies are allegedly eyeing our mineral deposits located around the country. But, development shouldn’t come at the cost of people or the environment.

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