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Sri Lanka is located in the path of major trade routes in the Indian Ocean, an advantage that helped establish it as one of the world's most important gem sources. In addition to gemstones, Sri Lanka has natural resources of limestone, graphite, mineral sands, phosphates, clay, and hydroelectric power.
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The existence of Graphite in Sri Lanka was known for a few centuries. The first record was in 1675 at Dutch period. In Kandyan era, iron ore had been melted in Graphite crucibles. Before, World War II there had been over 2500 Graphite pits and mines located in the southwest and central highlands of Sri Lanka.
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