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The Sri Lankan Gem and Jewellery industry is proud to have achieved a number of significant milestones from its inception. SLGJA is pleased to report that the import and export of Gems and Jewellery now take place with the minimum bureaucratic controls and we hope you enjoy the benefits of our efforts.

As a result of the vigorous canvassing to the Government and its authorities SLGJA witnesses a more trade friendly attitude by them and for this we are grateful. The members of the EXCO committees during the past years sacrificed their valuable time and devoted much efforts towards achieving these goals. Our thanks go out to the Ratnapura and Beruwala Associations for joining us in all these efforts and we hope that this cooperation will continue to grow from strength to strength.

Significant Milestones

• FACETS Sri Lanka Gem and Jewellery Show was hosted from 1991 to 2019 continuously. Providing much needed opportunity for SMEs to exhibit their products at the show, creating new avenues for them to establish trade contacts, market their products, gain international exposure, opportunity to participate at a prestigious international show and above all, providing them the encouragement to ''stand-up'' on their own.
• Proposal for simplifying the import export procedures related to the Gem and Jewellery sector was submitted to the treasury.
• SLGJA report to be included in the China SL FTA was forwarded to the Department of Commerce.
• 10% Tax on Gold Bullion imports was reduced to 7.5% by the Government on a request made by the SLGJA.
• Several recommendations were made to NGJA, Finance Ministry and Customs regarding simplifying procedures for the clearance and re-export of gem parcels sent for value addition in Sri Lanka and also the resumption of the EMS Service.
• Resolved issues related to the waiver for Gem and Jewellery parcels taken overseas to be exhibited at global trade shows.
• SLGJA’s request to charge 0.5% +VAT as service charges, for the sold items only, on persons returning back with their goods taken on consignment is being seriously considered.
• ICA Congress was held in Colombo, along with 2 FACETS gem shows which showed overwhelming success. Held from May 16 – 19, 2015 at the Cinnamon Grand Hotel. Parallel to the Congress, Mini Gem Exhibition was held with 55 stalls.
• Established 24/7 export services at the Airport.
• Suggestions were made to relevant Ministries to facilitate a loan scheme to gem dealers and miners at a concessionary rate, having their assets as collateral.
• 15% VAT which was imposed on imports of Gems and Jewellery was exempted.
• SLGJA made many representations to the Government objecting to 14%-28% tax to be imposed on exports and foreign currency sales of Gems and Jewellery.
• Jewellery design training program was initiated expecting to fulfil the industry’s requirement of designers.
• Resolving the exemption of NBT on gemstone imports that was passed in the budget. Initiated discussions on the NBT exemption for the required raw material to be imported without any hassle.
• Negotiated favourable rates for lapidary export parcels with several logistic companies.
• Lobbied for a flat tax based on turnover, or in the alternative, a deemed tax.
• The exemption of VAT for locally manufactured Jewellery, was formalized by the Ministry of Finance with the presentation of the Vat amendment bill to the Parliament.
• SLGJA was successful in convincing the officials to permit sealing of gem parcels at the airport, a facility which was suddenly withdrawn to the inconvenience of the exporters and the increased costs that had to be borne as a result.
• Initiated discussions on permitting returned parcels to be released to the importer at the airport in tamper proof pouches which are to be processed at a later date.

SLGJA was faced with a bigger challenge in the form of the Covid-19 virus that has affected the entire world, resulting in a 3 month lockdown in Sri Lanka and bringing international trade and travel to a grinding halt. The new government, in consultation with SLGJA and regional associations decide on a variety of policy measures that have been made to boost the export potential of the industry.

• The government took the initiative to remove the income tax imposed.
• Removed the tax on gold imports to aid jewellery exporters.
• NBT imposed on gem imports was also removed.
• After series of discussions with NGJA the matters mentioned below have been nominated to encourage more exports.
  • Direct online sales.
  • Re-implementation of the voucher system for gem exports.
  • Reduce NGJA export charges.
  • Extending time period for consignment exports and to receive remittances.
• Sri Lanka Gems book was launched in order to promote distribute and capitalize Sri Lanka Sapphires and coloured stones globally.

The Gem and Jewellery industry was badly affected owing to the ongoing Covid pandemic. Many meetings were held with HE the president, Ministers and other Government representatives and the following were achieved, incentives obtained together with solutions to long standing issues that affected the industry.

• A decision was taken by the government to renew the tax exemption for Gem exports.
• All export service charges for confirmed sales were brought down from 0.05%to 0.25%.
• A special mechanism was allowed for export parcels upto the value of USD 3000 for the export process to be speedier and efficient.
• A coordinated effort has been requested with the foreign missions to promote the Sri Lanka Sapphire brand.
• The export policies and procedures to be assessed in line with the Government Policy of Ease of Doing Business and enable more efficient and hassle free export procedures which will assist in improving exports.
• Discussions are on-going to facilitate return shipments of personally carried export parcels by sealing it in a new tamper proof bag with the Customs at the airport.
• Negotiations are on-going to allow to proceed gem import shipments to the importer so that they will not have to spend unnecessary time and cost in coming to NGJA offices.
• A very successful online Jewellery webinar was conducted at the AOD Sri Lanka design Festival.
• Commenced discussions with VTA on implementation of a training centre for the lapidary industry.
• Discussions were held with FEDEX, UPS and the postal authorities to reduce shipping charges on exports.