December 18, Colombo (LNW): Sri Lanka is failing to fully capitalise on its mineral resources, with exports reaching only about half of their estimated potential, according to new research highlighted by the Pathfinder Foundation. Using figures from the ITC Export Potential Map, the study estimates that the country could earn around US$778 million annually from mineral exports, yet current earnings stand at roughly US$389 million.
The findings suggest that with greater investment in value-added processing and downstream industries, export revenues could rise far more sharply, potentially approaching US$2 billion a year. Analysts argue that such growth would require targeted policy reforms, modern technology and stronger investor confidence.
The observations were shared at the launch of two reports examining Sri Lanka’s mining prospects and its transition towards clean energy and net-zero goals. Speaking at the event, Australian High Commissioner Matthew Duckworth said Australia’s own experience showed how strategic investment in minerals and renewable energy can reshape an economy.
He noted that mining plays a central role in Australia, contributing around a tenth of national output and generating well over half of export income. In his view, Sri Lanka holds comparable promise, particularly as global demand for critical minerals continues to rise.
Mr Duckworth pointed to Sri Lanka’s high-quality graphite deposits, which are increasingly sought after for advanced technologies, as well as mineral sand reserves in the northern and eastern regions. He described these resources as an opportunity for the country to diversify away from traditional industries and build new export strengths.
Drawing parallels between the two nations, he added that Australia is keen to see Sri Lanka benefit from similar developments in both mining and renewable energy, noting that the two countries share common interests in promoting sustainable growth and cleaner energy pathways.