By: Staff Writer

March 20, Colombo (LNW): India’s Ministry of Mines hosted two meetings with industry stakeholders in January to discuss opportunities for the mining of critical minerals by Indian companies in Sri Lanka and Australia. These meetings were organised in line with the ministry’s broader push to strengthen India’s critical minerals supply chain through the acquisition of overseas mineral assets.

The ministry met with representatives from companies including Ola Electric, Hindalco Industries, and Gujarat Mineral Development Corporation to discuss the prospects of graphite mining in Sri Lanka on January 5.

Three days later, it organised a luncheon meeting to explore avenues for mining opportunities in Australia, which was attended by the Indian High Commissioner-designate to Australia, Gopal Bagley, and various industry representatives from companies including Coal India, Steel Authority of India, Vedanta, Tata Steel, Adani Group, and JSW Steel.

Sri Lanka holds significant reserves of vein graphite, a highly pure form of natural graphite that is only found on the island nation. Graphite is a critical mineral that is extensively used as the anode material in lithium-ion batteries.

By weight, graphite is typically the largest component in lithium-ion batteries, with up to 70 kilograms of graphite used in an average electric vehicle (EV).

Graphite’s vital application in EVs explains the participation of Ola Electric in the ministry meeting. Ola has previously shown interest in entering the critical minerals supply chain by participating in the ministry’s ongoing first tranche of critical minerals auction.

It had also attended a ministry meeting in October on opportunities in Zambia for the mining of copper, which is used as the cathode material in EV batteries.

India’s interest in Sri Lanka’s graphite coincides with the Sri Lankan government’s active pursuit of Indian companies for graphite mining in the country.

“We have the best graphite in the world. Now, Indian companies will be manufacturing electric vehicles. One of the large components for electric batteries is graphite.

We used to have about 30,000 graphite mines. So there’s a lot of opportunity with the expertise and the technology these Indian companies have, I think they should seriously look at Sri Lanka,” the Sri Lankan Minister of State for Foreign Affairs Tharaka Balasuriya said in an interview to ANI on February 22.

Graphite mining in Sri Lanka peaked during the two World Wars in the 20th century, hitting over 30,000 tonnes in annual exports. In 2023, however, the country only exported graphite weighing around 2,500 tonnes and valuing roughly $6 million. Sri Lanka has graphite reserves of around 1.3 million tonnes, as per data with the US Geological Survey.

Graphite in India is largely concentrated in Arunachal Pradesh, Jammu & Kashmir, and Jharkhand, with these three states collectively accounting for 74 per cent of India’s graphite resources. However, only Tamil Nadu, Jharkhand, and Odisha have graphite reserves, which are measured resources that are economically viable to extract.

By: Staff Writer

March 20, Colombo (LNW): Japan has provided a grant of Rs3.3 billion to Sri Lanka under its Economic and Social Development Programme this year.

Sri Lanka and Japan today signed the Exchange of Notes pertaining to the grant assistance amounting to Japanese Yen 1,600 million (approximately LKR 3.3 billion) to be provided under this Programme.

The Government of Japan, as one of Sri Lanka’s main development partners, provides concessional loans and various grant aid schemes such as the Economic and Social Development Programs, Technical Cooperation, Research Partnerships, Development Studies, and non-project grant aid.

The aim is to improve the socio-economic status by strengthening bilateral relations between the two countries.

During the present economic crisis in Sri Lanka, the government of Japan has extended its cooperation by providing required immediate humanitarian assistance for the affected community as well as by equipping the public sector, aiming to improve the socioeconomic situation in the country.

This Japanese grant is for the requirements of diversified field’s namely marine environment, fishing, health care, and vocational training in the country, finance ministry annaounced.

The Exchange of Notes pertaining to the above grant were signed by the Secretary to the Ministry of Finance, Economic Stabilization, and National Policies, Mr. K.M. Mahinda Siriwardana, on behalf of the Government of Sri Lanka yesterday , at the Ministry of Finance, Economic Stabilization, and National Policies. The Ambassador of Japan in Sri Lanka, Mr. MIZUKOSHI Hideaki signed the Exchange of Notes on behalf of the Government of Japan.(Bandula)

Under this grant assistance four vessels for oil boom with the necessary accessories, a generator, and a cargo truck with a crane for improving oil spill response and management of the Sri Lanka coast guard; portable ultrasonic scanners, gynecological examination tables, a laparoscopic system, mammography, fetal heart rates, and infant warmers for improving the maternal and pediatric care in major hospitals in Northern Province.

It will help to provide industrial sewing machines, zigzag (industrial) machines, overlock (5 thread) machines, and button holder (5 thread, industrial) machines for dressmaker courses at vocational training centers in Northern Province.

A petrol boat, a rigid-hull inflatable boat, lighted buoys, and HG radio Transceivers will be provided for the project of ensure the safety of fishermen..

The Exchange of Notes pertaining to the above grant were signed by the Secretary to the Ministry of Finance, Economic Stabilization, and National Policies, Mr. K.M. Mahinda Siriwardana, on behalf of the Government of Sri Lanka on March 18, 2024, at the Ministry of Finance, Economic Stabilization, and National Policies. The Ambassador of Japan in Sri Lanka, Mr. MIZUKOSHI Hideaki signed the Exchange of Notes on behalf of the Government of Japan.

By: Staff Writer

March 20, Colombo (LNW): Sri Lanka is now exploring the possibility of relocating Ceylon Petroleum Corporation’s oil refinery to Trincomalee in the wake of the decsion to operate it as a public enterprise independent of the Corporation (CPC)., Energy Minister Kanchana Wijesekera said.

The cabinet of ministers this week approved a proposal to spin off the refinery as a separate company to raise capital from local and foreign investors to modernize the 1969 structure.

“It was also decided to explore the option of relocating the Sapugaskanda Oil Refinery to Trincomalee in the future…,” Minister Wijesekera said in an x.com (twitter) message.

The move is considered in the light of the development of a tank farm in Trincomalee, he said adding that the Sapugaskanda oil refinery will be upgraded with modern facilities along with the expansion of the Tank Farm.

The move comes following Minister Wijesekera›s revelation last month that discussions were held with the Indian Oil Company (IOC) regarding a proposed multi-product oil pipeline connecting Nagapattnam, Trincomalee Tank Farm and Colombo

Earlier this year, the Cabinet approved the initiation of the procurement process to select a prospective investor for the proposed development plan’s phase one in the Upper Tank area of China Harbour, Trincomalee and to lease 61 tanks of 99 fuel container tanks of the Upper Tank area to Trincomalee Terminal Ltd., for a period of 50 years.

The feasibility study aimed at developing the 61 oil tanks recommends a comprehensive 16-year plan divided into seven phases.

Under the first phase, the focus is on renovating nine productive tanks, laying a pipeline spanning around 1.75 kilometres and constructing essential supporting facilities. The project will be developed as a Build, Operate and Transfer (BOT) basis.

The Sapugaskanda Oil Refinery is the sole facility of its kind in the country, built with assistance from Iran in 1969. Despite several attempts by successive Governments to expand it, all were sidelined due to high costs involved. In 2010, a feasibility study said it would cost an estimated $ 2 billion to upgrade and expand the facility.

The refinery in its current capacity only meets 25% of the local demand for refined petroleum products with the remainder largely imported. It supplies oil to the CPC.

By transforming the refinery into a separate public enterprise, the aim is to facilitate essential investments from both domestic and foreign private sectors.

The strategic move also reflects a broader trend of the Government in restructuring and modernising State-owned enterprises (SOEs) to overcome the financial burden of those on economic growth and efficiency.

By: Staff Writer

March 20, Colombo (LNW): In yet another instance of India’s growing role as a development aid partner for its neighbouring countries, New Delhi has pledged t a sum of US $61.5 million as a grant to Sri Lanka to fully develop the Kankesanthurai (KKS) Port in the country’s Northern Province.

The message was conveyed during a meeting between Indian High Commissioner Santosh Jha and Ports, Shipping and Aviation Minister NimalSiripala de Silva, a communiqué from the Ministry noted.

“As part of the project, a new breakwater will be constructed, and the port will be dredged up to a depth of 30 meters to accommodate deep-draft vessels,” it added.

During the discussion, the Indian High Commissioner has expressed India›s commitment to enhancing regional cooperation and connectivity between the two countries. He has also pledged their fullest support to attract more Indian tourists to Sri Lanka.

He also said that the Indian Government has designated Sri Lanka as the top tier travel destination for Indian tourists, and hailed the commencement of flights between Chennai and Jaffna.

The Ports Minister disclosed the construction of a new terminal which is underway with an investment of Rs. 600 million at the Port of Kankesanthurai, will cater to the convenience of Indian tourists.

De Silva also highlighted that over the past year, a significant number of Indian tourists have visited Sri Lanka.

In February this year, the Cabinet of Ministers approved a proposal to offer an affordable travel fee system between India and Sri Lanka to promote tourism.

As per the approved measures, the embarkation tax currently levied on passengers departing Sri Lanka via passenger ferries is reduced from $ 60 to $ 5, whilst the passenger ships will be slashed from $ 60 to $ 20.

Situated in the northern region of Sri Lanka, the KKS Port covers an area of approximately 16 acres. The port is located at a distance of 56 nautical miles from Karaikal Port, Pondicherry, India. When it comes to overland travel, the distance between the port and the nearest land is approximately 23 km.

With an investment of SLR400 million, plans have been finalized to utilise the KKS Port, which is owned by the Ports Authority SLPA, for the transportation of passenger vessels and cargo between Sri Lanka and India.

Apart from a terminal building, the port now boasts well-established security, customs, immigration facilities, and state-of-the-art equipment, ensuring smooth and efficient operations.

Significant focus is currently being placed on the development of the KKS Port as a matter of national interest.

Under the KKS Port development project, it has been planned to repair and rehabilitate the existing breakwaters, piers and roads including dredging and wreck removal and construction of a new pier and a warehouse.