By Zahida Rizvi
In the aftermath of the third wave of the Covid-19 pandemic, the gem and jewellery industry is ranked as the worst affected industry, with exports declining more than 50%, The Sunday Morning Business learnt.
Speaking to us, Sri Lanka Gem and Jewellery Association (SLGJA) Chairman Ahsan Riffai, said that the industry has not received much support from the Government, and the most impacted players in the industry are the small scale operators, and Small and Medium Enterprises (SMEs).
“The pandemic has to settle and the borders have to open, since unlike other businesses, gem and jewellery enterprises are dependent on the buyer and seller contact, which is affected due to the pandemic,” he stated.
Last year, during the outbreak of the coronavirus pandemic, the Sri Lanka Gem and Jewellery Association (SLGJA) hosted a forum intending to help the industry at a time of crisis by developing a sustainable policy framework.
The forum discussed the steps in formulating customised quarantine procedures for foreign buyers to trade in Sri Lanka, and relaxing Custom bonds for foreign sellers interested in exhibiting at FACETS – the only international gem and jewellery exhibition in Sri Lanka.
Meanwhile, in 2021, the Government had declared to take further steps to expand the local market of the gem and jewellery industry for foreigners to purchase high-quality gems and jewellery in Sri Lanka.
However, Riffai pointed out that currently, it will be difficult to expand the industry, although after the pandemic is over, there is potential for the industry to uplift itself by exporting to China and Canada.
The Government relaxed the 14% income tax on the Gem and Jewellery industry, last year. It was also decided to remove the barriers that had obstructed 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. President Gotabaya Rajapaksa instructed the officials to expedite the construction works of the proposed Gem Trading Complex and Training Centre at Demuwawatha, Ratnapura.
Unregulated and illicit gem mining is taking place in areas containing rich gem deposits of the Ratnapura District on large scale. President Rajapaksa urged officials to immediately halt gem-mining activities carried out in a harmful manner to the environment, as well as to remove barriers to the traditional gem mining industry.
According to the KPMG Analysis, the total global consumption of the global jewellery industry, including all diamonds, coloured stones, gold and silver, is estimated to be around $ 200-250 billion per annum. Of this total, the US accounts for 26%, China 13%, and India 12%.
The main gemstones found in Sri Lanka include sapphire, alexandrite, cat’s eye, padparadscha aquamarine, and moonstone, amongst which the blue sapphire is the most widely-known coloured gemstone. Generally, all precious and semi-precious gemstones other than diamonds are referred to as coloured stones.
The Sri Lankan gem trade, as an international sourcing centre for coloured stones, has traditionally faced competition from Bangkok and Hong Kong. Consistent support from the respective governments, liberalisation of their import and export procedures and financial scale have all enabled Bangkok and Hangchou to become formidable gem centres despite the fact that almost all their stocks are in fact imported to the country. The exports of gems and jewellery from Thailand in 2006 was $ 4 billion and by the end of 2015 this figure reached $ 10.9 billion as per data compiled by the Gem and Jewellery Institute of Thailand, which is a government body.
Gem exports decline by 50% amidst new wave
02 May 2021
Gem exports decline by 50% amidst new wave
02 May 2021
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