Gems and jewellery a billion dollar industry - Dr. Amunugama

Enterprise Development and Investment Promotion Minister Dr. Sarath Amunugama said the gem and jewellery industry is a major export earner and has the potential to be a billion dollar industry.

He was addressing the 17th Sri Lanka International Gem and Jewellery Show, Facets 2007 at the BMICH.

Dr. Amunugama said the gem and jewellery industry should outdo the garment industry which is the major export earner with an annual growth of over Rs. 1 billion. "Of the US$450 million gem and jewellery industry the contribution from gem exports is 30 percent while the balance is from diamonds and jewellery.

The three industries need to be integrated to produce value added products that will capture new markets," he said.

He said the gem industry has to be innovative and come up with niche products to compete with new markets in the region.

"No longer could the industry be simply confined to finding gem stones but need to add value and meet customer requirements," Dr. Amunugama said.

Sri Lanka is one of the few countries that a visitor could spend around US$ 100 on a ring and sell it for a bigger margin at another destination.

The Minister said the industry cannot be complacent with its position but need to constantly upgrade its standards and market its products.

Minister of Export Development and International Trade Prof. G.L. Peiris said it was timely that we develop our exports since gem exports have grown 13 percent compared to last year.

"Laws and regulations governing the exploitation of gem mining, procedures for a reliable certification, access to funding, value addition and entering new markets are some of the vital areas that the industry should focus on," Prof. Peiris said.

Vice President ICA Edward W. Bochm said Brazil, Mexico, Russia and UAE are emerging markets and the Sri Lankan gem and jewellery industry will need to gear up with novel products satisfying the diverse customer needs.

Gem and jewellery industry exports increased 23 percent in the region. This year's gem and jewellery export earnings are over Rs. 44.9 billion. Sri Lanka is a source country and is one of the five leading countries which has large deposits of gems.