Sri Lanka Bans Raw Mineral Exports to Boost Economy

The Government of Sri Lanka introduced a revised National Mineral Policy on June 11, 2026, marking the first significant update to the country's mineral framework in 27 years. The new policy mandates that minerals undergo value addition and local processing before they can be exported, effectively banning the shipment of raw materials.

Officials intend to increase foreign exchange earnings by processing high-value resources such as zircon, garnet, silica, quartz, and titanium domestically. Minister of Industry and Entrepreneurship Development Sunil Handunneththi stated that the national economy previously failed to capture the full commercial value of these resources. He noted that some minerals exported for 2,000 dollars per ton could command significantly higher prices if processed within the country.

The policy has received cabinet approval and has been presented to parliament to formalize the transition from raw material export to a value-added industrial model.