The Sri Lankan government is preparing key legal, trade, and administrative reforms to revive the gem and jewellery industry, which has been facing serious challenges in recent years. The industry, known for its uniqueness and competitive edge, holds significant potential for the country’s economic future, according to Deputy Minister of Industry and Entrepreneurship Development, Chathuranga Abeysinghe.
Speaking at a media briefing in Colombo, the minister announced the Gem City International Gem and Jewellery Exhibition 2025, set to take place in Ratnapura from August 15 to 17. He highlighted the industry’s untapped potential, stating that Sri Lanka could earn up to USD 1.5 billion in medium-term revenue from gem and jewellery exports—an amount the country has not reached in decades.
Abeysinghe also raised concerns over whether the full value of gem and jewellery exports is being properly recorded in national accounts. “We are addressing several key issues to unlock this industry’s potential,” he said.
According to the minister, Sri Lanka’s gem and jewellery industry has suffered a major setback over the past two years. The downturn was triggered by recent tax changes, particularly in 2024, which affected the re-export of value-added gems and imposed new taxes on essential raw materials such as gold and silver.
“These tax policies have had a damaging effect on the industry. Re-exports of processed gems have nearly collapsed. We are actively working to change the current tax system and remove these obstacles,” Abeysinghe explained.
He added that the government is committed to creating a more business-friendly environment for the sector. This includes removing unnecessary legal barriers and reducing the time and effort needed to operate within the industry. The reforms are part of a broader national plan to position Sri Lanka as a global hub for gems and jewellery.
The upcoming Gem City International Gem and Jewellery Exhibition 2025 will be a key part of this effort. Scheduled in the heart of Ratnapura—Sri Lanka’s gem capital—the event is expected to support the government’s target of reaching USD 1.5 billion in annual exports.
The exhibition will feature more than 100 high-value booths and will showcase a wide range of products and services. These include precious and semi-precious stones, fine jewellery, laboratory testing, gem cutting and processing, as well as tools and machinery used in the industry.
With international attention growing, the event aims to reinforce Ratnapura’s status as a leading global center for gem trading and promote Sri Lanka’s return to the forefront of the global jewellery market.
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