Jaffna has high purity limestone deposits but cement production ceased with the flare up in hostilities.
"Birla would get a lease and they would operate the project on a build, operate and transfer (BOT) basis," Senaratne said.
The limestone resources have been eyed by other cement players including Holcim, which operates a 500Mta facility in Puttalam in the island’s Western coast.
However the area, though under government control, is separated from the rest of the island by a territory controlled by Tamil Tiger guerillas.
