New strategy for gem and jewellery industry ensures shining future
Sri Lanka’s gem and jewellery sector is now poised for a glittering future with new efforts of the government to strengthen its position as an industry hub achieving a US$1 billion export target this year.
As per Department of Customs’ statistics, earnings from gem and jewellery exports recorded a growth of 2.59 per cent to $29.93 million in January 2021 compared to $ 28.20 million in January 2020.
A new strategy will be implemented by the State Ministry of Gem and Jewellery in collaboration with the Finance Ministry amidst gem traders facing a difficult operating environment from the economic slowdown.
The Presidential Task Force on Gems and Jewellery exports has met for the first time in Colombo recently under Prime Minister and Finance Minister Mahinda Rajapaksa to fine tune this strategy aimed at achieving a target of $5 billion by 2025.
The urgent need of streamlining gem mining, tackling land issues and gem cutting as well as gem actions, certification, conducting auctions and creating international acceptance for local industry has been identified at the meeting.
The upgrading of the Gem Laboratory of the National Gems and Jewellery Authority (NGJA) to international standards and the setting up of three international quality laboratories in Ratnapura, Galle and Colombo along with mobile labs were also discussed.
Measures will be taken to conduct a special study on the industry in Thailand and Hong Kong and use it as role model for Sri Lanka soon while implementing a training programme for youth with private sector assistance.
Online gem and jewellery trading will also be promoted providing necessary assistance for local traders.
Arrangements are being made to set up Sri Lanka gem trading centres in Beijing and Shanghai in China.
The construction of the Gem Trading Complex and Training Centre in Demuwawatha, Ratnapura is to be launched soon, following budgetary allocations made by the Treasury, a senior Finance Ministry official who attended the meeting told the Business Times.
The government is currently building a Gem and Jewellery Trade Centre in Ratnapura to attract sales which now take place in Bangkok.
In addition, a proposal has also been made to consider the possibility of direct air connectivity between Sri Lanka and Madagascar.
Currently, most of Madagascar’s gems are imported to Sri Lanka for value additions, by way of cutting and polishing, before being re-exported to gem trading hubs such as Bangkok and Hong Kong.
Representatives of gem traders and exporters associations have proposed to conduct an international level gem auction with the participation of foreign buyers at the Mahinda Rajapaksa international Conference Hall in Hambantota.
Action will be taken to remove the barriers that obstruct the release of uncultivated lands with gem deposits belonging to plantation companies and to take over control of these lands for the benefit of the mining industry.
Sri Lanka is the ninth largest exporter of precious stones to the global market and one of the five most important gem bearing nations of the world at present.
The entire industry employs approximately 600,000 people, including miners, cutters and polishers, dealers, jewellery designers, manufacturers and craftsmen, and marketing resources.