A UK company has instructed counsel for a potential treaty claim against Sri Lanka over the cancellation of its mining licences that it says the state is trying to award to third parties.
The government has given permission to a British company to start a massive mining project from Akkaraipattu to Pottuvil on the rapidly eroding east coast.
The project is being implemented by Sri Lanka-based Damsila Exports in association with British company Capital Metals Pvt. The beach is rich in ilmenite, rutile, zircon and garnet, and is expected to invest US $ 35 million (Rs. 7,000 million) in the project, the UK-based company had stated.