Editor’s Note
This report highlights a critical debate within Sri Lanka’s gem industry, focusing on technological restrictions and land scarcity. The Committee on Public Finance’s discussion underscores the structural reforms needed to unlock the sector’s economic potential.
Issues surrounding the restriction of scanning technology in gem mining and the diminishing availability of mining lands took centre stage during a recent meeting of the Committee on Public Finance (COPF).
Chaired by MP Dr. Harsha de Silva, the committee convened to discuss the structural challenges hindering the growth of the gem and jewellery sector.
Industry stakeholders highlighted several critical areas for improvement, including:
– Relaxing regulations to boost exports.
– Restructuring the role of the National Gem and Jewellery Authority.
– Introducing safe harbour rules for income tax and reforming VAT.
– Regulating informal foreign entities while encouraging formal foreign investment.
In response, Dr. Harsha de Silva identified three primary areas of concern: tax and physical liberalisation, administration, and mining policy issues.
He announced plans to compile a detailed discussion paper consolidating these points to facilitate productive dialogue with senior ministry officials.
The meeting saw participation from Deputy Ministers Chathuranga Abeysinghe, Dr. Kaushalya Ariyarathne, and Nishantha Jayaweera, alongside MPs Ravi Karunanayake, Harshana Rajakaruna, Nimal Palihena, and Wijesiri Basnayake.