Former Minister of State for Finance Mr. Eran Wickramaratne raised a question in Parliament as to why Puttalam Ilmenite Limited (PIL) which has spent over USD 20 million over the last 10-years, has been denied entry to Sri Lanka Cement corporation land hindering the project realisation. The envisaged investment is USD 100 million which is the largest ever mineral sector investment in the country, and a significant contribution to the FDI flow at this critical juncture.
The MPs question which anticipates written answers on 07, August, from the Minister of Industries inter alia about the manner and methods in which Sri Lanka Cement Corporation(SLCC) entered into an agreement with an entity called Asha Minerals (Pvt) ltd, violating the mines and mineral Act, Intellectual Property Act and depriving the investment rights of the PIL which already possesses required licenses long before the agreement with Asha.
The Parliamentary query by Eran Wickramaratne asks the minister of Industries as follows
1. Reason for not taking action for the letter dated 23.05.2023 of the Ministry of Industries
2. Outcome of the appeal of PIL, forwarded to the ministry of Finance on 19.10.2023
3. Reasons for not following instructions given to the SLCC by the Ministry of Finance on 30.01.2024 and 11.03.2024 respectively and,
4. Manner in which the compliance is enforced on SLCC by the line ministry of Finnnce now.
Sri Lanka Cement Corp (SLCC) was under the purview of State ministry of Primary Industries which was under the line ministry of Industries. As there was no progress or remedy in this case later the Cement Corporation was brought under the purview of the Ministry of Finance.
But despite the instruction by the Treasury the members of SLCC board of Directors have so far not complied with the Treasury instructions, while the SLCC board members appointed by ex-State Minister Chamara Samapath Dassanayake continues to occupy the hot seat.
It is reported that Asha Minerals, is a company with a share capital of Rs 1000 as per its Form 15 Annual Return. On paper Asha is owned by one individual Tushan Fernando, believed to be the brother in law of ex-MP Susantha Punchinilame. The CEO of Asha is Rasika Attapattu who appears to have no mineral sector experience whatsoever but has managed to short circuit the normal approvals & ignore others. Most importantly, Asha do not have any licence from GSMB (mines Bureau) but are supposedly still engaged in construction work on the site under the facilitation of SLCC
The Puttalam Ilmenite Limited (PIL) including their reputed joint venture partners such as Dilmah, has already spent around USD 20 million, and their BOI investment proposal with blue chip Australian & Chinese partners of 27th of January 2022 was granted approval. PIL also possesses licences from the GSMB for many years, and has exclusive rights to the mineral sands. However PIL are denied site entry by SLCC.