National Gem and Jewellery Authority upbeat of $ 2 b export goal by 2025

Chairman and CEO Viraj De Silva

National Gem and Jewe-llery Authority Chairman and CEO Viraj de Silva this week expressed confidence in achieving a $ 2 billion target in exports by 2025 from the industry as envisioned by President Ranil Wickremesinghe recently.

De Silva highlighted that during the first seven months of this year, Sri Lanka has already achieved $ 312 million via gem exports whilst forecast for 2023 is $ 500 million.

He also focussed attention on the implementation of a program in accordance with President Wickremesinghe’s directives, aimed at curbing the illegal export of gems. This illegal export has posed a significant challenge to achieving the $ 2 billion target.

Speaking at the ‘101 Katha’ program produced by the Presidential Media Division, de Silva indicated that necessary measures will be promptly taken to facilitate direct gem purchases by foreign buyers through auctions within the country.

De Silva also said the following during the talk show:

“The Gem and Jewellery Authority Act governs a range of regulatory tasks, spanning from authorising mining permits to overseeing the export of gemstones. Our regulatory responsibilities encompass processes such as auctions, sales and international shipments. All of these endeavours are geared towards benefiting the nation. Furthermore, we undertake both local and international promotional initiatives, with a strong emphasis on maximising foreign exchange inflow into the country.

“With six regional offices scattered across the nation, the Gem and Jewellery Authority actively monitors activities through these branches. Notably, gems discovered within mines cannot be sold arbitrarily; rather, they must be presented at public auctions in accordance with the nation’s legal stipulations. This practice ensures transparency and adherence to the law.

“From the proceeds of gemstone sales, the Government receives a share amounting to 2.5%. Recent events have showcased a substantial growth in mining activities, resulting in the sale of a gem worth a remarkable Rs. 400 million. This upsurge in mining efforts has contributed to a notable increase in the revenue generated from gem sales.

“Stringent conditions are placed on the operation of gem mines. Any engagement in illegal mining activities can lead to the revocation of licenses. Furthermore, the exportation of gemstones is subject to specific protocols. Following the discovery of a gemstone, it must undergo a process of polishing and subsequent auctioning under the auspices of the Gem and Jewellery Authority.

“Currently, an investigation is underway to identify instances where activities are being conducted without the approval of the Gem and Jewellery Authority. President Ranil Wickremesinghe has also issued directives to delve into this matter, reflecting the seriousness with which these issues are being addressed.

“Between January and July of this year, the export of gems has generated a substantial income of $ 312 million. However, there exists untapped potential for even greater financial gains.

“In contrast to other sectors, the Gem and Jewellery Authority has achieved an impressive export growth rate of 34%. Notably, this growth rate surpasses that of the tea and garment industries, as evidenced by reports from the Central Bank.

“Gems discovered in this manner are the collective property of the entire nation. It is imperative that the country receives their rightful value. This could prove invaluable in alleviating the current economic challenges.

“The export of gems has the potential to yield an average annual income of $ 2 billion. Sri Lanka should aspire to become a prominent hub for gem trade on the global stage. Our on-going efforts reflect this ambition, with the projected income from the gem industry expected to reach $ 500 million by year’s end.

“Expanding the number of exporters engaged in these activities is a crucial endeavour. Presently, everyday citizens participate in this industry. We have initiated a program aimed at expanding the gem export process, inviting those interested in the field to join us in this endeavour. Our primary objective is to identify buyers and cultivate new markets.

Furthermore, proactive measures have been implemented to prevent irregularities within the Gem and Jewellery Authority. To address the potential for financial improprieties arising from long-term officer tenure, a formal transfer policy has been introduced. Additionally, the integration of accounting software has effectively eliminated any room for financial misconduct.

“It is also within our institution’s responsibility to validate the quality of gold items owned by Sri Lankan citizens. Thus, individuals have the option to visit our office and assess the quality of their gold possessions. The certification bestowed by the Gem and Jewellery Authority significantly enhances the value of one’s gold items.”