As geopolitical tensions quietly escalate in South Asia, Sri Lanka has become the unexpected battleground in a high-stakes resource war between two regional giants India and China each vying for strategic dominance over the island’s mineral-rich sands, especially those in Pulmoddai.
While President Anura Kumara Dissanayake’s government opens doors for Indian mining companies to explore and invest in Sri Lanka’s mineral sand reserves, China once the dominant player had been counting on reclaiming control of the Pulmoddai mines following the NPP’s political consolidation in the North and East.
Historically, the strategic importance of Sri Lanka’s mineral sands isn’t new. Even during the civil war, LTTE leader Velupillai Prabhakaran recognized their value. He instructed his cadres not to attack the mineral sand extraction sites, even as he sabotaged water supplies and shipping routes to disrupt government operations. His calculated protection of these assets underscored their long-term strategic importance.
Post-war, China moved swiftly to secure control. Backed by Mahinda Rajapaksa’s administration, Beijing became the largest buyer of Sri Lankan mineral sands, with 2023 marking the highest-ever exports to China. With Pulmoddai home to the country’s largest mineral sand reserves, Chinese companies gained a critical foothold.
Meanwhile, India remained on the sidelines, only slowly recognizing China’s growing influence in Pulmoddai. As early as the Trump era when discussions on Ukraine’s mineral resources surfaced New Delhi had quietly initiated talks with Colombo about securing its own mineral supply chains in South Asia.
In a turning point, Anura’s government in 2024 accelerated Indian involvement, nudging China into a secondary position. By February 2025, Industries Minister Sunil Handunnetti had visited India, signing a memorandum of understanding (MoU) with India’s Ministry of Mining. In the weeks that followed, delegations from top-tier Indian mining firms arrived in Sri Lanka to scout and survey the most lucrative sites.
As it stands, India now appears to lead the mineral sand race, but China is unlikely to concede easily. With both nations investing diplomatic and economic capital, Sri Lanka finds itself at the center of a silent yet fierce competition over critical mineral resources, essential for global industries like electronics, defense, and renewable energy.
What’s clear is that this geopolitical tug-of-war places the Sri Lankan government in a precarious position, forced to balance its economic interests with the diplomatic tightrope between New Delhi and Beijing.
Pulmoddai’s mineral sands, once a quiet national asset, have now become a symbol of South Asia’s new resource-driven Cold War and the outcome of this battle could reshape the region’s strategic landscape for decades to come.
