The Hon. Sunil Handunnetti - Minister of Industry and Entrepreneurship Development

¶ 01 (a) (i) The Sri Lanka Cement Corporation has granted a long-term lease to Asha Minerals (Pvt.) Ltd. to carry out a project to separate minerals from the topsoil of the land located at the Aruwakkalu Limestone Deposit. Approval had not been obtained from this Ministry or the Attorney‑General’s Department regarding entry into this agreement.

¶ 02 (ii) Legal proceedings are underway in this regard.

¶ 03 (b) (i) Lanka Mineral Sands Limited and Asha Lanka entered into an agreement on 27.05.2005 to salvage the ship “M.V. Cordiality”, which had sunk in the Pulmoddai sea.

¶ 04 (ii) Advice was sought from the Attorney‑General on several occasions regarding the ownership of the ilmenite stock recovered from the sunken ship. The final advice given by the Attorney‑General was that Lanka Mineral Sands may attempt to reach an amicable settlement. Thereafter, a committee chaired by the then Secretary to the Ministry of Industries, General Daya Ratnayake, considered the matter, and based on the committee’s report, Lanka Mineral Sands and Asha Lanka Enterprises (Pvt.) Ltd. entered into a Memorandum of Understanding. In terms thereof, the ilmenite stock removed from the ship was handed over to Asha Lanka Enterprises (Pvt.) Ltd.

¶ 05 (iii) I do not agree. The Ministry has taken necessary measures to protect mineral resources under its purview and to utilize them effectively and efficiently.

¶ 06 (c) A review of the Mineral Resources Policy is underway. This includes: - a process to revoke any irregularly issued licences; - a system for regular monitoring of validly issued licences; and - a mechanism to ensure transparency and competition in the issuance of new licences.

¶ 07 The reviewed Mineral Policy and its associated Strategic Plan are scheduled to be submitted to the Cabinet for approval before the end of this year.

¶ 08 (d) Not applicable.