Badulla District MPs told parliament in March 2025 that illegal gem mining continues with local officials sometimes unwilling to intervene because of political pressure. Abandoned pits in Lunugala, Passara, and Haldummulla were cited as ongoing hazards.
Licensed miners are required to backfill pits and forfeit deposits when they fail. NGJA reported spending 11 million rupees in 2024 to close pits left by unlicensed or non-compliant operators.
Mechanized mining without proper licence and environmental clearance is separate from traditional small-scale pit mining. Backhoes and river extraction trigger National Environmental Act prohibitions in river reserves.
For buyers, illegal mining is a provenance and ethics issue. Stones from chaotic pits enter the same markets as licensed production. Demand for documented chain of custody pushes dealers toward licensed suppliers, but the grey market remains large.
