ECONOMYNEXT – Sri Lanka’s National Gem and Jewellery Authority anticipates an annual revenue of 2 billion US dollars by 2025 from gem exports, with 500 million in earnings already projected for 2023, the authority’s chief executive officer Viraj de Silva said.
The President’s Media Division (PMD) said in a statement quoting de Silva on Thursday August 24 that a programme is to be launched to address the illegal export of gems which stand in the way of achieving the 2 billion-dollar target.
He said measures will be promptly taken to facilitate direct gem purchases by foreign buyers through auctions within the country.
State Minister for Primary Industries Chamara Sampath Dasanayake said earlier this week that Sri Lanka has generated 315 million US dollars in revenue from the export of gems and jewellery so far in 2023, recording a growth rate of 34 percent.
The Gem and Jewellery Authority Act provides for authorising mining permits and overseeing the export of gemstones, among other things.
“Our regulatory responsibilities encompass processes such as auctions, sales and international shipments. All of these endeavours are geared towards benefiting the nation. We also undertake both local and international promotional initiatives, with a strong emphasis on maximising foreign exchange inflow into the country,” de Silva was quoted as saying.
The Gem and Jewellery Authority monitors activities through six regional offices. According to de Silva, gems discovered within mines cannot be sold arbitrarily. They must instead be presented at public auctions in accordance with Sri Lanka’s legal stipulations. This practice ensures transparency and adherence to the law, he said.
“From the proceeds of gemstone sales, the government receives a share amounting to 2.5 percent. Recent events have shown a substantial growth in mining activities, resulting in the sale of a gem worth a remarkable 400 million rupees. This upsurge in mining efforts has contributed to a notable increase in the revenue generated from gem sales,” he said.
The official said stringent conditions are placed on the operation of gem mines, noting that any engagement in illegal mining activities can lead to the revocation of licenses.The export of gemstones is subject to specific protocols and following the discovery of a gemstone, it must undergo a process of polishing and subsequent auctioning under the auspices of the Gem and Jewellery Authority.
“Currently, an investigation is underway to identify instances where activities are being conducted without the approval of the Gem and Jewellery Authority. President Ranil Wickremesinghe has also issued directives to delve into this matter, reflecting the seriousness with which these issues are being addressed,” said de Silva.
Between January and July of this year, he said, the export of gems has generated a substantial income of 312 million dollars and there exists untapped potential for even greater financial gains.
“In contrast to other sectors, the Gem and Jewellery Authority has achieved an impressive export growth rate of 34 percent. Notably, this growth rate surpasses that of the tea and garment industries, as evidenced by reports from the Central Bank.
“Gems discovered in this manner are the collective property of the entire nation. It is imperative that the country receives their rightful value. This could prove invaluable in alleviating the current economic challenges,” he said.
The export of gems has the potential to yield an average annual income of 2 billion dollars, claimed de Silva.
“Sri Lanka should aspire to become a prominent hub for gem trade on the global stage. Our on-going efforts reflect this ambition, with the projected income from the gem industry expected to reach 500 million dollars by year’s end,” he said.
Expanding the number of exporters engaged in these activities is crucial, said the official.
“We have initiated a programme aimed at expanding the gem export process, inviting those interested in the field to join us in this endeavour. Our primary objective is to identify buyers and cultivate new markets,” he said.
Proactive measures have also been taken to prevent irregularities within the Gem and Jewellery Authority, de Silva said. To address the potential for financial improprieties arising from long-term officer tenure, a formal transfer policy has been introduced and the integration of accounting software has effectively eliminated any room for financial misconduct, he claimed.
“It is also within our institution’s responsibility to validate the quality of gold items owned by Sri Lankan citizens. Individuals have the option to visit our office and assess the quality of their gold possessions. The certification bestowed by the Gem and Jewellery Authority significantly enhances the value of one’s gold items,” he said. (Colombo/Aug25/2023)
Source : EconomyNext
