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.”

The Automobile Association of Ceylon (AAC) celebrated its 120th anniversary recently.

The members of the Executive Committee, several other well-wishers and government and other officials participated.

At the ceremony the National Development Bank launched its Affinity Credit Card to members of AAC.

By Hiran H.Senewiratne

Sri Lanka has an immense growth potential in its travel and tourism industry, yet this rich potential has not been realized. Therefore, capacity building in the hotel sector is the need of the hour to attract more tourists into the country in the future, a top travel and tourism sector expert Chandana Amaradasa said.

“At present Sri Lanka has approximately 40,000 rooms, which need to be doubled at least within the next three to five years. Apart from that the best solution would be to upgrade existing hotels which are operating to five star level, said Amaradasa who works as a Managing Director at Island Leisure Lanka, an award winning hospitality and destination management company which celebrated the 15th anniversary of its founding at Colombo Club at Hotel Taj Samudra recently.

” The Sri Lankan tourism sector is now bullish with the arrival of two million tourists in 2024, while this year we could expect 2.5 million to 3 million tourist arrivals with an expected revenue of US $ 3.5 billion to 4 billion. Therefore, capacity building in the hotel sector is now an important factor to cater to the ever increasing tourist arrivals into the country, he said.

Amaradasa, former Senior Manager of Taj Hotels and former vice president, Ceylon Hotels Graduates’ Association also said that the imposition of VAT liability from zero for the inbound tourism sector is one of the disadvantages for the industry.

Amaradasa added: “Abandoned old colonial buildings, circuit bungalows and other important buildings belonging to the government should be handed over to the private sector to develop them into hotels as a short term solution for this issue.

“Tax impositions for inbound tour operators who are doing yeoman service to bring tourists into the country would definitely affect the growth of the sector. Therefore, the government and relevant authorities should immediately address that issue.”

Amaradasa who is also an Executive Committee Member PATA also said that, high quality PR campaigns are needed globally to attract high quality tourists into the country, while minimizing brain drain in the sector. “The industry is now suffering due to the exodus of high quality travel and tourism sector employees, which is an important factor to consider and address at this juncture, he said.

“Sri Lanka possesses two of the oldest golf links in the world, and could be promoted as a golf hub in the region, Amaradasa added.