Global experts back Sri Lanka’s bid for gem hub status

• Seek exemption from US tariffs

By Nishel Fernando

Sri Lanka is making a concerted push to establish itself as a premier global gem hub, capitalising on production challenges in other source markets and its own unique industry advantages. 

A key part of this strategy involves proactively working to navigate international trade barriers, including the seeking of a potential exemption from U.S. tariffs on coloured gemstones.

A significant development was announced by Bruce Bridges, the President of the influential American Gem Trade Association (AGTA). He revealed that high-level discussions are underway to ease trade friction with one of the world’s largest consumer markets.

“I’ve had a very good discussion on working together to try to see a solution for an exemption to US tariffs on coloured gemstones entering the United States. Hopefully working together with our friends here in Sri Lanka, we will be able to achieve a successful outcome,” Bridges said while addressing virtually the launch of the Gem Sri Lanka 2026 exhibition, organised by The Ceylon Gem and Jewellery Traders Association (CGJTA).

This initiative comes at a time of global trade uncertainty, a situation that international experts believe Sri Lanka is uniquely poised to leverage.

Andrew Lucas, Senior Vice President at Guild Gem Laboratories, explained that production difficulties and unpredictable policies elsewhere are creating opportunities for Sri Lanka.

“There is a lot of difficulty throughout the world in production,” Lucas noted, citing Brazil’s recent struggles with a sudden 50 percent tariff. 

“I think you are poised to take advantage of many of the issues that are afflicting the gem trade in the world. Sri Lanka is really in a position to take charge of the industry.”

According to Lucas, Sri Lanka’s strength lies in its integrated model of “source, production, and the selection,” combined with a forward-thinking mindset. He contrasted the island’s dynamic young traders, who “embrace influencers in the digital era,” with more stagnant, traditional markets.

“This modern approach is built on a foundation of trust and sustainability, a key pillar of the country’s hub strategy,”  H. M. K. Dulani, Director General at the National Gem and Jewellery Authority, emphasised this point.

“The global demand for sustainably sourced gemstone is steadily rising, and Sri Lanka is at the forefront of ensuring ethical and responsible gem mining practices,” she said. “This exhibition showcases the very best of Sri Lanka to the world while contributing to the sustainable growth of the gem and jewellery sector.”

With strong partnerships in key regional markets like India, which consumes around 80 percent of Sri Lankan yellow sapphires, the nation is solidifying its position.