VAT-hit gem and jewellery sector looks for glitter as Facets kicks off today

Saturday, 6 January 2024 00:20 - - {{hitsCtrl.values.hits}}

The country’s gem and jewellery industry is ready to glitter as much as possible when it kicks off the 3-day Facets exhibition today at the Cinnamon Grand, Colombo amidst fresh challenges arising from the new VAT regime.

Staged for the 30th year, Facets 2024, aims to make a bigger impact with the introduction of several new dedicated pavilions for the first time.

They include Sustainable Pavilion, Sapphire Maste-rpiece Pavilion, and Rough Stone Pavilion, Gem Lab Pavilion.

The 2024 event will also feature a special ‘Reminisce of the Past’ Event.

These are in addition to the customary Premier Gem Pavilion, Premier Jewellery Pavilion and NGJA SME Pavilion.

The show of excellence is organised by the industry beacon Sri Lanka Gem and Jewellery Association (SLGJA) in partnership with the National Gem and Jewellery Authority (NGJA) and the Export Development Board (EDB). Facets has been positioned as Asia›s premier gem and jewellery exhibition.

Organisers expect to draw over 8,000 trade visitors including from overseas to Facets 2024 at the Atrium Lobby of the Cinnamon Grand. There will be over 150 booths. Sri Lanka is home for around 70 varieties of gemstones and world renowned for its Blue Sapphires.

“Facets has always emphasised that this show is for Sri Lanka, showcasing our rich heritage of gems and jewels to the world. We aim to bring in reputed buyers from all over the globe with participants, sharing our exquisite gems and jewellery,” said Facets Sri Lanka Chairman Altaf Iqbal expressed his enthusiasm for the upcoming event.

Facets will serve as a much looked-forward meeting point for the global gem and jewellery sector, attracting prominent traders, gemstone and jewellery wholesalers, exporters, manufacturers, lapidaries, retailers, and collectors from across the globe.

The show is timely and industry hopes there will be bigger success as it grapples to deal with the impact of being brought under 18% Value Added Tax (VAT) for the first time.

A fortnight ago the industry warned that the Government’s decision to bring it under VAT would pose serious challenges. It will impact exports as 70% of value added exports is dependent on rough stones import for commercial reasons. Sales to incoming tourists, a key market segment, is another whilst inability to claim input credit will impact jewellery manufacturers and retailers.

Sri Lanka’s gem exports is around $ 500 million whilst sales to tourists is around $ 1 billion. The livelihood of over 600,000 persons and their families is dependent on the industry as well. President Ranil Wickremesinghe last year said there was potential to boost exports to $ 2 billion.

The industry which will converge today at the Cinnamon Grand and put up a spirited display of excellence is confident that the Government will consider alternate proposals it has submitted.

Sri Lanka has earned worldwide recognition as a veritable treasure trove of gemstones, renowned for producing some of the finest specimens in the world. As the oldest source country for coloured gemstones, Sri Lanka boasts a unique and vibrant selection of gemstones, complemented by exquisitely crafted jewellery that seamlessly blends international trends with elements of local culture.