Queries underway on foreign firms’ hand in gem mining

25 August 2015 03:18 am - 0 - {{hitsCtrl.values.hits}}

A A A

By Chandeepa Wettasinghe
The National Gem and Jewellery Authority (NGJA) is currently investigating a harrowing trend of foreign companies engaged in gem mining in Sri Lanka through local third parties.

“We are currently investigating whether foreign companies are indirectly operating in the country,” NGJA Land and Mining Director Aruna Gunawardene said.
All foreigners were forbidden from exploring or mining gems in Sri Lanka according to a presidential order this January, in the pretext of them using advanced machinery to deplete mineral veins in a few months and export the gems with adverse effects to the environment and local industry stakeholders. President Maithripala Sirisena gave the order after local industry stakeholders expressed concerns over Gemfields PLC, a British company, which was said to have acquired a 75 percent stake in 16 gem exploration licences for US $ 400,000.

“Foreigners can’t have mining licences. Locals can. But both locals and foreigners can’t have exploration licences,” Gunawardene said, clearing up the current status of the regulations.

However, an industry source told Mirror Business that some foreign companies are still engaged in mining activities in Sri Lanka through third parties.
“What happens is that a local sets up a company, brings in the machinery and has the controlling share as a front. But the gems go to them (foreign party). These machines are more suited for mines in Africa,” the source said.

Gemfields PLC is one of the world’s largest coloured gem suppliers. The company fell into controversy this April after it made a global announcement that it was continuing sapphire mining and explorations in Sri Lanka.

However, NGJA Director General M. Wickramasinghe said that the NGJA had written to Gemfields to retract the message.

Meanwhile, Gunawardene said that NGJA had suspected several foreign parties of conducting indirect operations. However, it is difficult to track down the perpetrators due to the lack of a paper trail.

He also said that NGJA had issued 100s of mining licences to locals since the foreign ban was enacted.

Sri Lanka is home to 70 varieties of the 200 coloured stones discovered in the world and is famous for the Ceylon sapphire. However, the industry has been going through a hard time this year with the gem export income down sharply due to increased tariffs in China to tackle black money being converted into gemstones in bulk.

Instead of investing in value addition and attempting to increase income in the form of jewellery, the industry is now attempting to sell low to medium range stones in bulk to India.

The entire gems, diamonds and jewellery export figures fell 30.4 percent year-on-year (YoY) in June and 13.6 percent YoY for the first six months of this year.

Industry experts say that Sri Lankan gems and jewellery are losing ground in Europe due to a mismatch in market taste and designs. Exports to the top destination US however remain healthy.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Queries underway on foreign firms’ hand in gem mining

Comments - 0

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Racism, body-shaming fly high with Air Belgium crew against SriLankan staff

AstraZeneca admits for first time its COVID vaccine can cause rare side effect

“Ranil Ralla” : Will Wickremesinghe ride on a winning wave?

VFS Global is here to stay for at least 12 years, says Tiran

Controversy over foreigners issuing on-arrival visas at BIA

Attempt to send 17 year-old-boy to London on forged documents foiled

MIRROR CRICKET

India’s Amul to sponsor Sri Lanka team for T20 World Cup

Shakib threatens to beat up fan over clicking selfie

BCCI breaks silence after Trinidad PM reveals terror threat to T20 World Cup, report says it’s from ISIS

Sri Lanka, Scotland gear up for big final that decides Women’s T20 World Cup groups

TODAY'S HEADLINES

Father holds two children hostage for nine hours

Sri Lanka to retain existing visa fee-PMD

Sri Lankan Visa fiasco worse than bond scam: Sajith

Presidential Elections Prez to announce his stand formally in June only

India’s Amul to sponsor Sri Lanka team for T20 World Cup

Shakib threatens to beat up fan over clicking selfie

BCCI breaks silence after Trinidad PM reveals terror threat to T20 World Cup, report says it’s from ISIS

Sri Lanka, Scotland gear up for big final that decides Women’s T20 World Cup groups