Business
‘Local gem and jewellery industry at a critical juncture; its potential going untapped’
By Ifham Nizam
Sri Lanka’s gem and jewellery industry, once a jewel of the nation’s economy, is now at a critical juncture. Against this backdrop, Deputy Minister of Industry and Entrepreneurship Development Chaturanga Abeysinghe calls for urgent reforms and collective efforts to restore the industry’s global standing and unlock its untapped potential.
Highlighting the challenges, Abeysinghe remarked, “Sri Lanka has lost its gemstones in two ways – as citizens and as a country. The famed Blue Sapphire, valued at a minimum of Rs. 150,000 per carat, and other high-value gems like rubies are treasures that should place our nation on the global map. Yet, we have failed to leverage this heritage.”
The deputy minister shed light on key issues plaguing the industry:
The imposition of VAT on imported uncut gems has severely impacted local polishing and value-addition industries. “Earlier, there was a flat charge of USD 200 per consignment, but the new VAT regime has crippled gem-related businesses. In the past year, exports have dropped by 30%, he explained.
“The lack of standardization in gem pricing remains a unique challenge. The buyer determines the price of a gem, making regulation incredibly difficult, said Abeysinghe.
Abeysinghe added: “Illegal Chinese traders and issues with mining licenses further exacerbate the industry’s struggles.
“Sri Lanka must aim to become a USD 2 billion industry. To achieve this, we need to transform into a hub for gem and jewellery operations.
“The industry’s recovery depends on a coordinated effort from all stakeholders.
“We need to create specialized zones for gem and jewellery operations to attract international investors and establish Sri Lanka as a global hub.
“Industry associations and unions have come together to save this sector. This collaboration offers a unique advantage to the government in addressing immediate and long-term challenges.
“The new machinery prototype developed by the University of Sri Jayewardenepura’s engineering faculty in collaboration with the Asian Development Bank (ADB) is laudable.
“This innovative tool has the potential to modernize the sector. However, commercialization requires an additional USD 2,000, and we must act swiftly to make this a reality.
“Achieving a USD 15 billion reserve by 2028 hinges on industries like ours. Removing VAT on uncut gems is not just a demand but a necessity for the survival and growth of the sector.
“With its rich heritage and immense potential, Sri Lanka’s gem and jewellery industry stands at the threshold of a revival. However, this journey requires urgent policy reforms, investments, and collective determination to reclaim its rightful place on the world stage.”
Business
Ceylinco Life agent among three global finalists for award
Ceylinco Life’s Ambalantota branch agent AIP Manjula has been named one of three global finalists for the prestigious Insurance Agent of the Year award at the 11th Asia Trusted Life Agents & Advisers Awards (ATLAA) 2026.
The recognition places a Sri Lankan insurance professional among the finalists in a regional field spanning South Asia, Southeast Asia, East Asia and the wider Asia-Pacific region.
Ceylinco Life said the achievement reflected the calibre and customer-focused approach of its agency force, while recognising Manjula’s professionalism and commitment to policyholders.
The award evaluates insurance agents on criteria extending beyond sales performance, including ethical conduct, client service, policy persistency, digital adoption, innovative practices and contributions to the insurance industry and community.
The awards are organised by Asia Advisers Network and Asia Insurance Review, with LIMRA as co-organiser. An independent judging and balloting process is monitored by KPMG as the official scrutineer. The judging panel comprises senior insurance executives, association presidents and industry experts from across the Asia-Pacific region.
Business
CEAT Kelani retains AA+ rating for sixth year
CEAT Kelani Holdings (CKH) has retained its National Long-Term Rating of ‘AA+(lka)’ with a Stable Outlook from Fitch Ratings for the sixth consecutive year, reflecting the company’s financial resilience and leading position in Sri Lanka’s pneumatic tyre market.
The ‘AA+(lka)’ rating, the second-highest on Fitch’s national scale, indicates a very strong capacity to meet financial commitments.
Fitch said CKH’s established market leadership and resilient financial profile remained key strengths, while noting its exposure to price-sensitive, cyclical and highly competitive markets.
The Stable Outlook reflects expectations that the company will maintain its market position despite rising input costs and increasing competition from imported tyres, while preserving adequate credit metrics during periods of weaker earnings and higher investment.
Fitch expects CKH’s established brand, extensive dealer network and adaptive pricing strategies to support its market position. Planned production facility upgrades are also expected to improve product quality, particularly in the radial tyre segment.
The rating agency expects near-term pressure on margins from higher raw material and energy costs but said the company’s low leverage and sound liquidity would provide a cushion.
CKH Chairman Chanaka De Silva said the rating reinforced the company’s focus on disciplined financial management, operational adaptability and long-term investment.
Business
Commercial Bank leads nationwide aquatic clean-up drive
Commercial Bank of Ceylon mobilised employees, customers, volunteers and community members for a nationwide coastal and aquatic clean-up campaign across 20 locations on September 19 to mark International Coastal Cleanup Day 2026.
Conducted under the bank’s sustainability platform, themed ‘Forward Together for a Cleaner Future’, the initiative covered 16 coastal locations and four inland waterways, bringing together stakeholders for a coordinated environmental conservation effort.
The flagship programme was held at Mount Lavinia Beach, with additional activities at Wellawatte and Galle Face beaches. Similar initiatives were conducted by the bank’s regional offices at locations including Kalutara, Negombo, Trincomalee, Batticaloa, Puttalam, Jaffna, Galle, Dondra, Tangalle and along the Mahaweli River.
Employees, management, Future Force volunteers, customers and their families participated alongside the Marine Environment Protection Authority (MEPA), United Nations Global Compact Network Sri Lanka, government and local authorities, environmental organisations and community members.
The bank said the initiative reflected its commitment to water stewardship after adopting Sustainable Development Goal 6 — Clean Water and Sanitation — as a priority goal in 2025.
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