Financial Times

Kandy – A Board of Enterprise Development would shortly be set up in order to develop all sectors of new enterprises and entrepreneurship development, according to the Minister of Enterprise Development and Investment Promotion Rohitha Bogollagama.

He said he hoped to make the proposal at the next Budget and already a Cabinet paper has been presented to give relief to the gem trade by waiving off taxes with the reintroduction of the payment of one percent for gems taken out the pits. This would bring out more gems for sale and would be more transparent in their dealings.

The Minister made these comments at the opening of the gem, jewellery and handicrafts exhibition. at the Queen’s Hotel in Kandy recently. The exhibition was organized by the Sri Lanka National Gem and Jewellery Authority (NGJA) and the Kandy-based National Handicrafts Association

After the opening Bogallagama was showed the “Star apphire of Sri Lanka”, the third largest star sapphire of similar quality in existence. The minister was told that this priceless Star Sapphire was especially brought for this exhibition due to the Kandy Esala Perahera so that people could view it. The Minister also said that this is a sensational discovery in the gem mining history of Sri Lanka and is owned by the Sri Lanka National Gem and Jewellery Authority. The "Star Sapphire of Lanka" as it is named weighs 393carats and was heavily guarded by police.

The minister said that up to June 2006 export of gems was worth Rs 26.7 billion and their target up to December 2006 is Rs 42 million. He also said that there is transparency in the sale of land for gem mining and from 163 blocks of land the Authority had been able to collect Rs 88 million.

The minister also emphasized that the 2.5 percent of the Port Air Levy (PAL) on import of gems would be brought to zero rate and the levy of 2.5 percent on import of gold would also be brought to zero rate for which a Cabinet paper has already been submitted.

Discussing the high cost of brass and other raw material, the Minister said that there is a great demand for raw material from China and this has led to the high cost of raw material which sometimes cannot be borne by the local enterprises.

He said that the alternative is to bring out better quality products so that they could compete in the world market. He said that he is taking steps in this direction to both ensure the quality and also not forgetting to find ways and means of bringing about the question of raw material as low as possible.

He also said that a future programme would be to create a virtual shopping mall enabling local dealers to internationally market their gems and jewellery though ‘NGJA” e-business.

Bogollagama said that it is proposed to establish an International Gem Testing Labouratory under the provisions of the National Gem and Jewellery Act.
He also said that he proposes to obtain worldwide acceptance for the Sri Lanka Assay Office. Among those who spoke were the Chairman of the National Handicrafts Board M. K. R.Tillekaratne and Deputy Director General of the Authority Bandula Vithanage.