Editor’s Note
This article highlights concerns raised by Sri Lanka’s Minister of Industry regarding the illegal export of gemstones, attributed to regulatory inefficiencies and inadequate facilities for traders.
Minister of Industry, Sunil Handunnetti, stated that there has been a noticeable increase in the illegal export of gemstones from Sri Lanka. The Minister made these remarks while participating in a gem and jewellery trade exhibition held in the Hikkaduwa area.
He noted that the lack of adequate facilities and an inefficient regulatory framework for gem traders have significantly contributed to this trend.
Addressing the issue further, Minister Handunnetti explained that the legal process for exporting gemstones is time-consuming, subject to delays, and often involves repeated fees for the same consignment. He observed that such inefficiencies discourage compliance and have led many traders to resort to illegal methods of export.
He further pointed out that these practices have resulted in the country failing to record its rightful income from the gem industry.
He noted that an industry with the potential to contribute between USD 1 billion and USD 2 billion to the national economy is currently generating only around USD 200 million to USD 300 million annually.
Minister Handunnetti further stated that the true income potential of the gem industry has not been realized for several years. While current earnings remain limited, he emphasized that the sector holds significant scope for value addition and long-term economic growth.
Explaining the Government’s reform measures, he said that Cabinet approval has already been granted for the introduction of a single tax per parcel for gemstones imported into Sri Lanka for value addition.
He added that under the proposed system, neither the quantity nor the value of gemstones in a parcel would be a determining factor.
The primary objective, he said, is to facilitate the easy import of gemstones into Sri Lanka, thereby increasing national income through value addition.