The Sri Lanka Gem and Jewellery Association (SLGJA) hosted the first Key Person’s Forum for the industry recently, with the objective of helping the industry at a time of crisis by developing a sustainable policy framework. The forum was conducted with Hon. State Minister of Money and Capital Markets, and State Enterprise Reform, Ajith Nivard Cabraal as the speaker, while Hon. Lohan Ratwatte, State Minister of Gem and Jewellery related Industries and Mr. Thilak Weerasinghe, Chairman/CEO of the National Gem and Jewellery Authority (NGJA) joined as Special Guests. The event, which created a platform for a two-way discussion between the industry and state, was attended by many local gem and jewellery traders.
The gem and jewellery industry in Sri Lanka spans over centuries in history with able miners, talented crafts people and astute traders carrying the treasures of the land beyond oceans, and bringing in much wealth back to the country. The contribution of the industry to the national economy is immense.
Speaking on behalf of the NGJA, Mr. Thilak Nanayakkara highlighted avenues in which the industry has made progress over the past years, while bringing to attention the areas that need development. He pointed out the need for a Gem Tower in Colombo – similar to the one that is being constructed in Ratnapura, efficient courier services to benefit the traders and buyers, as well as developing an online licensing method. He reiterated the government’s target for the industry, a USD 5 Bn export revenue by 2025.
Both state ministers in attendance emphasized the need to work together to reach this target and further advance the gem and jewellery industry. Hon. Lohan Ratwatte pledged the assistance of the government in creating a dialogue with all stake holders and relaxing red tapes to ensure that the total value of the country’s treasures will flow back inward. Hon. Ajith Nevard Cabraal stated that having identified the very high potential of the industry, the government is ready to address the key issues, while maintaining consistent policies in areas such as tax, export, and customs to benefit the traders to reach the set target.
Other important issues discussed at the forum included customized quarantine procedures for foreign buyers to trade in Sri Lanka, relaxing custom bonds for foreign sellers interested in exhibiting at FACETS – the only international gem and jewellery exhibition in Sri Lanka-, as well as the ongoing discussions regarding the FTA with China, which is one of the biggest markets for the industry, and the only active market during the COVID 19 pandemic.
The income tax exemption for the industry was gladly received by the traders who were present. When inquired about the confirmation of the policy, the ministers committed to consistency in all reforms brought forth by the present government. With a separate ministry established for the gem and jewellery industry for the first time, and the willingness of the industrialists as well as the government to be open for discussion and support each other, the industry can look forward to progress in the next few years.