Sri Lanka implements new measures to strengthen gem industry

Colombo, Nov. 25 (Daily Mirror) - The government has introduced a series of regulatory measures to support and modernize the country’s gem industry, following approval by the Cabinet of Ministers.

Under a resolution presented by the President in his capacity as Minister of Finance, Plan Implementation, and Economic Development, new orders and regulations have been enacted to simplify taxation and customs procedures for gemstones.

Key measures include:

Weight-Based VAT for Gems: Genuine and semi-genuine gemstones imported into the country will now have Value Added Tax calculated based on their weight, as per an order under Section 6 of the VAT Act No. 14 of 2002 (Extraordinary Gazette No. 2461/43, dated 07.11.2025).

New Customs Codes: The Revenue Security Order No. 04/2025 under the Revenue Security Act No. 19 of 1962 (Extraordinary Gazette No. 2461/40, dated 07.11.2025) introduces national sub-division customs codes for gemstones, aligning with the weight-based VAT system.

Ports and Airport Tax Adjustments: An order under Section 3 of the Ports and Airport Development Tax Act No. 18 of 2011 (Extraordinary Gazette No. 2461/44, dated 07.11.2025) ensures the continued application of the new customs codes for gem imports at ports and airports.

Authorities say these steps aim to enhance transparency, simplify procedures, and encourage growth in Sri Lanka’s gem sector, reinforcing the country’s reputation as a leading gemstone hub in the global market.