Sri Lanka’s gem trade turns US tariff challenge into opportunity

From left: FACETS Head of Local Promotions Rizan Nazeer, Cinnamon Life CEO Sanjiv Hulugalle, FACETS 2026 Chairman Armil Sammoon, Sri Lanka Gem and Jewellery Association President Akram Cassim and Sri Lanka Gem and Jewellery Association Vice President and COO Shezan Mansoor  

PIC BY PRADEEP PATHIRANA

• Sentiment comes even as sector saw exports decline by 8.2% to reach US $ 195.1mn in 1H25
• Industry pins hopes on its premier international exhibition FACETS Sri Lanka 2026 to bolster trade and showcase nation’s unique ‘mine-to-market’ value chain
• Stresses FACETS serves as a crucial launchpad for SMEs

By Nishel Fernando
Sri Lanka’s gem and jewellery industry leaders are optimistic about weathering the potential US tariffs, anticipating a minimal impact on the exports. 
The sentiment comes even as the sector saw the exports decline by 8.2 percent to reach US $ 195.1 million in the first half of the year.
Speaking at a press conference in Colombo on Tuesday to announce the FACETS Sri Lanka 2026 exhibition, Sri Lanka Gem and Jewellery Association President Akram Cassim downplayed the concerns over the duties. 
“Currently, we are told it’s 20 percent, which is not too bad in comparison to some of the other countries that compete with us,” Cassim stated. 
He noted that the competing nations face higher duties. 
“One of our competitors or a country like Brazil, which is a minor, is currently being put on a tariff of 50 percent.”
The industry is pinning its hopes on its premier international exhibition FACETS Sri Lanka 2026 to bolster trade and showcase the nation’s unique ‘mine-to-market’ value chain. The event is scheduled for January 3, 4 and 5, 2026, at the new, upscale Cinnamon Life complex in Colombo.
FACETS 2026 Chairman Armil Samoon emphasised Sri Lanka’s unique position in the global market.
“Sri Lanka is not only one of the most celebrated sapphire producing nations on earth but also the largest source of sapphires that are both mined and masterfully crafted entirely here at home,” he said. 
Samoon highlighted that the exhibition serves as a crucial launchpad for the small and medium enterprises (SMEs), empowering them to connect with global buyers and enter new markets.
For over its 31-year history, FACETS has played a pivotal role in nurturing the SME sector. Organisers noted that the exhibition has served as a vital stepping stone for “hundreds” of small businesses, providing an affordable platform to gain international exposure, secure their first export orders and learn the dynamics of global trade. Many of today’s leading Sri Lankan gem trading houses began their journey as SMEs exhibiting at FACETS.
The move to Cinnamon Life signals a strategic “reinvention” of the trade show. 
Cinnamon Life CEO and General Manager Sanjiv Hulugalle described the partnership as an effort to elevate the event into a “multi-sensory global relevant experience”.
Despite a recent dip in the export figures, the industry’s strategy focuses on leveraging its core strengths: ethical origins, unmatched craftsmanship and its status as a primary source for high-quality gemstones, particularly sapphires.
When asked how FACETS could mitigate the effects of the US tariffs, the industry leaders pointed to the fundamental principles of supply and demand. 
“The market still will remain. There will be demand,” Cassim explained, suggesting that as a rare commodity, the introduction of tariffs could even spur buying activity.
The FACETS exhibition is positioned as the first major gem and jewellery show on the international calendar for the year, giving global buyers an opportunity to place orders for the entire year and build long-term relationships directly at the source. The event aims to reinforce Sri Lanka’s reputation as the undisputed heart of the sapphire world.

FACETS 2026

The 32nd edition of FACETS Sri Lanka will be held from January 3 to January 5, at Cinnamon Life – The Forum. 
The event will bring together over 100 exhibitors, including leading gem dealers, jewellery houses and emerging designers, from across the country. 
The exhibition aims to strengthen international trade links with targeted buyer delegations.
The event will feature curated networking events such as Sapphire Night, Power Breakfast for Women of Influence and High Tea Fashion Shows.
Turn to Page 14 for the interview titled ‘Gems, glamour and glitz’ with Gem and Jewellery Association President Akram Cassim.