Gem and jewellery exports stagnate at US$ 400m

Where has the lustre gone? - Experts

The gem and jewellery sector, a long standing industry in Sri Lanka, has an appallingly low annual export turnover of around US$ 400 million, when revenue should be at least US$ 1 billion by now, industry experts said at the 25th edition of Facets 2015, the flagship exhibition of the National Gem and Jewellery Association.

Two young women take a close look at a necklace at the Facets exhibition Pic: Sumanachandra Ariyawansa

They said it is pathetic that the abundantly rich natural resource in the country is not adequately exploited to expand the global footprint and bring in the much needed foreign exchange.

It is estimated that around 85 percent of the country’s land contains precious stones. Having mega shows and not making good use of this opportunity to be ahead of competitors in the global market is ridiculous, experts said.

Sri Lanka has the best expertise in the gem and jewelry industry with skilled cutters and polishers. A drawback in the industry is the lack of advanced technology for value-added exports which will woo more buyers in the international arena and position Sri Lanka as the top export destination in the world, an expert said.

General Secretary, United National Party, Kabir Hashim said it is sad to note that the huge potential of the gem and jewellery industry in Sri Lanka is not being properly exploited and it is being left for forces other than Sri Lankans to benefit from the enormously lucrative trade.

Sri Lanka did not have the ability to venture into global market in the 1980s due to the lack of expertise and technology. Today we have the best skilled workers who could retain the lustre of Ceylon precious stones amidst stiff global competition, Hashim said.

He said tonnes of precious stones went out of the country in gunny bags in the past and we lost billions of dollars. We have built the industry but not to its real potential. The new government will extend its fullest support the endeavour of the industry to reach US$ 1 billion in export income by 2016.

“There is no time to lose. We need to get on to work right now. The 2016 Facets must be much larger in size, revenue and participation. Exports must be with more value-addition and the market reach must be wider,” Hashim said.

The Blue Sapphire that adorned the wedding ring of Princess Kate Middleton and many renowned global personalities from the time of the monarchs, put Sri Lanka on the global map for exquisite stones.

However, the lustre of the gem and jewellery industry has been fading over the years due to the absence of a stable national policy to protect the industry. The number of skilled craftsmen has dwindled drastically to an insignificant level due to lack of facilities to ensure the safety and well-being of workers. Parlimentarian Dr. Harsha de Silva said we need to take a cue from countries that exploit gas and oil resources. The precious stone industry must leave no stone unturned to be ahead of competitors. The industry needs to ask why it hasn’t taken off and be where it ought to be today. There is no issue with supply.

“We need to ask, are we making use of technology and are the lapidaries under-performing? Issues such as, who could mine, licences and safety of the environment should take precedence. The industry needs a new plan to get to the next level of exports and reach the one billion dollar mark,” he said.

The four-day exhibition and trade fair at the BMICH concludes today.

- LF