By Yakuta DawoodDespite only being able to achieve $ 321 million in gem and jewellery industry exports as of mid-December 2021, the industry has now set an ambitious goal of $ 1 billion worth of exports for the year 2022, The Sunday Morning Business learns.Sharing their insights, State Ministry of Gem and Jewellery-Related Industries Secretary S.M. Piyatissa stated that the industry was only able to achieve $ 321 million by mid-December as people were unable to attend international trade fairs. This was due to the closure of countries as a result of the Covid-19 pandemic, he further noted.“The Covid-19 pandemic prevented us from meeting our targets, but in 2022 we are hoping to achieve $ 1 billion. Therefore, we will be adapting to the new normal and conducting online exhibitions, etc. to achieve the target,” Piyatissa said.He added that with the expected revival of tourism in Sri Lanka for the next year, local sales of gems and jewellery are also expected to increase compared to sales in 2021.In mid-May this year, the Sri Lankan gem and jewellery industry was ranked as the worst affected industry, with exports declining more than 50%.Speaking to us in May, Sri Lanka Gem and Jewellery Association (SLGJA) Chairman Ahsan Riffai explained that this was because the industry had not received much support from the Government, and the most impacted players in the industry were 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 said, expressing his concerns.According to the official website of the Export Development Board (EDB), the export value of the gem and jewellery industry for the year 2020 was approximately $ 148.35 million, after a downfall from 2019 which had a total export value of $ 313.82 million.At present, Sri Lanka is one of the most noteworthy countries in the world when it comes to gems and jewellery, despite its small size. The entire industry employs approximately 600,000 people, including miners, cutters and polishers, dealers, jewellery designers, manufacturers and craftsmen, and marketing resources.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.Meanwhile, a gazette notification for ordering gems up to $ 3,000 received the approval of the Ministerial Consultative Committee on Industries on 6 December at the committee meeting held in Parliament.It was discussed that these steps have been taken to promote the gem and jewellery industry as tourism has been subjected to restrictions given the prevailing Covid-19 pandemic situation. The gazette notification has also reduced the 0.5% fee charged by the Gem and Jewellery Authority to 0.25%.The above-mentioned Gazette Notification No. 2165/2 containing regulations made by the Minister of Industries under the National Gem and Jewellery Authority Act No. 50 of 1993 was thus approved by the Committee.Similarly, continuous measures are taken to expand the Sri Lankan gem and jewellery industry. One such measure was undertaken by the Government last year, with the removal of the 14% income tax on the industry.Furthermore, a decision was also held to remove the barriers that had obstructed the release of uncultivated lands with gem deposits belonging to plantation companies and to take control of these lands for the benefit of the mining industry.Earlier this year, President Gotabaya Rajapaksa also instructed officials to expedite the construction works of the proposed Gem Trading Complex and Training Centre at Demuwawatha, Ratnapura.
