Sri Lanka Develops Kahatagaha Graphite Mine as a Public Private Partnership for Industrial Advancement

Sri Lanka is repositioning its Kahatagaha Graphite Mine to enhance its role in the global industrial supply chain. The project, structured as a Public Private Partnership, aims to develop high-purity vein graphite production with downstream processing capabilities. This initiative aligns with growing global demand for battery-grade graphite and other advanced materials. The government will maintain majority control while the private sector partner will handle exploration, mine expansion, and modern extraction technologies. The project aims to create a vertically integrated graphite industry, promoting industrial growth and sustainability.

Published Mar 22, 2026

Sri Lanka is advancing the Kahatagaha Graphite Mine through a Public Private Partnership model, signaling a shift from raw material exports to value-added production. The initiative aims to leverage the country’s high-purity vein graphite in response to surging global demand, particularly for battery-grade materials.

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The government retains majority control while the private partner will provide capital, technical expertise, and modern extraction methods. The project emphasizes sustainable practices and aims to develop processing capabilities to enhance local industrial ecosystems. This approach seeks to position Sri Lanka as a competitive player in the global graphite market, with potential benefits extending to regional development and infrastructure improvement.