Gem-mining grows by 7.9 percent

The gem mining sub-sector grew by 7.9 percent in 2010. The gem and jewellery exports too reported 1.56 percent growth in 2010. Even in the first-half of 2011, increased earnings from mineral exports were led by higher exports of gems which increased by 35.5 percent in the first half of 2011, according to the Central Bank.

The Gem and jewellery sector also could become a major growth driver to achieve our 2015 export earnings target of $ 15 b said Industry and Commerce minister Rishad Bathiudeen.

Minister Bathiudeen was speaking after inaugurating the FACETS Sri Lanka show at the BMICH.

In 2010, Sri Lanka exported diamonds and jewellery to the value of $335m and $70m of Gems. Gem and jewellery contributes 5 percent to our total exports earnings. Gem and other mining was also the top sector contributing to the 15.5 percent growth in the mining and quarrying subsector in 2010.

There are more than 600,000 people engaged in the gem mining to market cycle,” Minister Bathiudeen said.

Sri Lanka’s gem exports in the first half of 2010 was $ 35.76 m and in the first half of 2011, it rose to $ 48.46 m showing an increase of 35.5 percent.

The major buyers of Sri Lanka gems are Hong Kong, USA, Thailand and Switzerland. Emerging Markets for Gems and Jewellery are China, Russia, and Brazil. Held annually in Colombo since 1991, FACETS is Sri Lanka’s only international gem and jewellery show, which saw a new beginning in September 2005 when it moved to the BMICH Exhibition and Convention Centre in Colombo.

Exhibitors increased by more than 50 percent and a total of 154 booths are on show this year which is the 21st annual exhibition in this series. Two, 19 member Chinese delegations and one 16, member Russian delegation are in Colombo for FACETS 2011 which will conclude today.

“As the international gem market recovered, the gem mining sub sector, which declined by 17.2 percent in 2009, too recovered and grew by 7.9 percent in 2010” Minister Bathiudeen said. “I believe that if we focus well, the gem and jewellery sector also could become a major growth driver to achieve our 2015 export earnings target of $ 15 b. It is in this context that I see the great potential of this sector. The National Gem & Jewellery Authority of Sri Lanka has set a target of $1 b through gem and jewellery exports by 2016.

“The Gem and Jewellery sector, which was severely affected by the global meltdown has been able to register a positive upward trend, from minus 26 percent growth in 2009, to 1.56 percent in 2010” Minister Bathiudeen said.

“The Sri Lanka Gem and Jewellery Association in collaboration with the National Gem and Jewellery Authority organized the FACETS - Sri Lanka International Gem & Jewellery Show 2011 to showcase Sri Lanka’s gem and jewellery products to the global market and to communicate Sri Lanka’s position as a leading supplier of gems and jewellery. It is the premier gem and jewellery show in Sri Lanka which is included in the international calendar” he said.

“From ancient times Sri Lanka is widely known as a supplier of treasured gems. Sri Lanka’s mineral rich soils have been yielding a seemingly never ending supply of high quality precious and semi-precious gem stones such as sapphires, star sapphires, rubies and catseyes. The gem and jewellery industry’s contribution, to the economy, in terms of foreign exchange earnings and employment generation is commendable.