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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 827

Sri Lanka mulls abundance of gold mines across the island

By J.A. Fernando in Colombo
Colombo, 26 June, (Asiantribune.com):

The Geological Survey and Mines Bureau of Sri Lanka had recently revealed that information has come to light regarding the existence of abundance of gold mines in several areas in the island nation.

Accordingly, Chairman of the bureau Dr. N.K. Wijayanada had said that there could be a possibility of gold mines existing in the Balangoda, Kiriibbanara and areas close to the Walawe and Manik rivers.

He has further noted while the gold is separated through chemical and physical methods, but in Sri Lanka they would only allow physical separation to be introduced.

Meanwhile, according to a research article published in Gondwana Research (Volume 4, Issue 3, July 2001, Pages 367-375) by S.W. Nawaratnea and C.B. Dissanayake of Department of Geology, University of Peradeniya, it is said that Gold found in various quantities mainly in the central and southern parts of Sri Lanka.

“Although gold is recovered mainly from river sediments at present, it has been mined in the past also from a concordant quartz reef in central Sri Lanka and from other types of sediments such as marshy beds surrounding dykes of ultramafic composition in southern Sri Lanka.”

The article notes adding that the sedimentary gold has been interpreted as being derived from the mineralizations of the latest deformational features such as ductile and brittle shears and fractures consisting of quartz veins, minor pegmatites and sulphide mineralizations mainly of pyrite, pyrrhotite and chalcopyrite.

The mineralization of gold is exclusively in the Highland Complex rocks of Sri Lanka which represent Archaean-Late Proterozoic metamorphic complexes according to the research report.

Earlier this year Asian Tribune reported that Sri Lanka’s Central Bank had said the pawning activities of banks of Sri Lanka had improved by 28% within the first three quarters of the year 2010 while it said that a sovereign (8 gram in weight) of Gold price has shot up to over Rs.42,000 in Sri Lankan jewellery market amidst the recent price hike in Gold prices globally. It was reported that by Central Bank of Sri Lanka that the share of pawning in total loans of the banking industry had appreciated from 8.1% as at end 2009 to 9.3% as at September 2010. It also highlighted that the distribution of credit growth up to September 2010 saw credit via pawning facilities contributing 14% to the total amount of credit distributed.

While Central Bank’s reduction of high rates of interest charged for pawning loans has been identified as contributing factor for the growth, many commercial and savings bank in the country has now started various financing products through pawning as the Gold prices in the world market has been gradually increasing with the recent clashes of the Western and Gulf economies .

- Asian Tribune -

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