7 January 2022 10:14 am
Sri Lanka’s fast growing gem and jewellery industry is gearing up to gather momentum as it acknowledges that the recently issued gazette by the government will pave the way for a smooth sailing forward.
The new regulation that came in after continuous lobbying by the industry, provides the “much-needed” factor in uplifting the industry after being hit by the pandemic and will ensure the US$ 1 billion target is met, the Sri Lanka Gem and Jewellery Authority (SLGJA) said.
On December 29, the government issued a gazette amending the regulations reducing the National Gem and Jewellery Authority service fee for exports and the export service fee, simplifying the export procedure further for the export of gems below US$ 3,000, and changing procedures, all of which provides fresh impetus to the industry.
Commending the government for taking on board the proposals put forward by the industry, the SLGJA said the regulation as per the fresh gazette is a “great boost” for the industry.
The SLGJA shared that the reduction in the export service fee and change in procedure is welcome as it opens up the market to smaller dealers and SMEs who can now export gems without having to go through a physical examination at the Authority.
“Relaxed regulations and incentives provide the industry with greater hope in reaching the US$1 billion target on exports set by the State,” the Association said.
Post Covid-19, the gem and jewellery industry faced significant challenges where the retail sector took a hit due to the lack of tourism. Exports were impacted due to reduced access to foreign buyers and a drop in the availability of gems in the market due to sporadic mining and lapidary production. The Association pointed out that since the beginning of the pandemic, unlike other industries, the gem and jewellery industry did not benefit from any form of relief. One of the key challenges was faced by exporters who were required to pay 0.5 percent on every export. The Association said it would continue to create awareness on the issues faced by the industry and identify measures to restore the export industry.