The alluring ‘Jewels 2010’

‘Jewels Sri Lanka 2010,’ the international gem, mineral and jewellery trade fair which concluded on Sunday was deemed a success by many participants, both stallholders and exhibitors.

By Cheranka Mendis

The event, which drew large numbers, especially due to the ‘stone’ they received at the entrance, ran for three days and saw 187 stalls adorned with glittering jewels.

The trade fair saw top names in the industry such as Stone and String, Raja Jewellers and Saf’s Collection mingling with Chamathka’s, Manoma Gem and Jewellery and so on, giving buyers, traders and the general public a broader perspective into the industry.

With Sri Lanka now poised for growth, the industry which recorded export revenue of US$ 392.4 million in 2009 must rev up its business, aggressively competing in the world market with value addition, precision and meeting international standards.

With the Minister of Environment Anura Priyadarshana Yapa, a key player in organising the event which was structured under the National Gem and Jewellery Authority (NGJA) and supported by the Gemmologists’ Association of Sri Lanka (GASL) expressed the need to triple the export revenue of the industry within the next few years. The trade fair made ground for a number of local industry players to gain knowledge on the demands in both the local and international markets.

Chairman/CEO of NGJA Anil Koswatta one of the organisers of the event, asserted that the exhibition was a successful one and gave exposure to a number of ‘export ready’ SME’s to test their products in the market prior to their participating in the Sri Lanka Pavilions at international trade fairs and exhibitions.

“We are looking at uplifting, developing, promoting and conducting legal regulatory works through the event. The National Gem and Jewellery Authority was established in 1993 when the State Gem Corporation (1971) was restructured to reach a wider arena of work. Since then (1993) ‘Jewels Sri Lanka 2010’ is the largest gem, mineral and jewellery trade fair to be hosted in the country.”

Quoting certain visions in the ‘Mahinda Chinthana,’ Koswatta stated that the President has identified the gem and jewellery sector as a vital component in the export sector. “There is an emphasis to turn Sri Lanka from a ‘raw product’ exporting country to a high quality value added product exporter. All manufacturers are encouraged to move up the value of products, particularly the gem and jewellery industry,” he said.  

This trade fair aimed at touching all parts of the industry — from the top notch business and export oriented companies to emerging sectors such as the traditional manufacturers from the North to the South — is the first step taken to drive the growth of the economy.

 Costs and expenditure

Koswatta said the event was fully sponsored by the government and cost the parties Rs. 20 million attracted over 30,000 persons. No doubt driven by the widely publicised stone they received —“a semi precious one which did not cost a lot of money” — the event was a success making all parties happy.

“The stone was a marketing point for the event — we wanted to attract the general public as well as businessmen. We knew such a marketing gimmick will attract more people. It worked and it was money well spent,” he said.

All booths were given at a concessionary price — where the businessmen were given a stall for Rs. 40,000 even though the actual cost was Rs. 120,000 each. For the small and medium enterprises (SMEs) the stalls were given free so that the participation would be more. There were 95 industry export holders at ‘Jewels Sri Lanka 2010’ along with 64 SMEs. The trade fair hosted a gem and jewellery competition from the Gemmology Association of Sri Lanka, as well as demonstrations, free gold and silver testing and other educational stalls from the University of Moratuwa and the Academy of Design.

 Statistics and estimates

On the industry as a whole, Koswatta said that the industry has been doing well during 2010 with the sector recording an overall growth of 20.6 per cent during the first half. This brought forth earnings of US$ 197.06 million in comparison with the corresponding figure of US$ 163.40 million in 2009.

The export statistics show that in 2009, gems worth US$ 63 million were exported, while exports of jewellery stood at US$ 13.2 million. Export of diamond jewellery had earned US$ 3.6 million last year. It is estimated that an approximate US$ 450 million of exports could be expected at the end of the year. This would be an eight per cent growth from 2009. An increase in growth of 20 per cent is expected in 2011 and by 2016 it is hoped to increase the export revenue to reach US$ 1 billion.

In 2011, the industry is to take part in 12 international shows, with local traders having participated in fairs held in Turkey, China, Singapore, India and Russia this year, Koswatta said.

Awards and certificates

The three day ‘Jewels Sri Lanka 2010’ fair and exhibition saw awards being presented to big timers in the industry from both the NGJA and the GASL. Awards of recognition were presented to P.G.R. Dharmarathne, Deshabandu L. Ellawala, Deshabandu Macky Hashim, Deshabandu Naufer S. Jabir and Punsiri Tennakoon as well as past presidents of NGJA — M.S.M. Fazly, P.L.A. Gunawardena, Shah M. Bawa, Sheriff A. Rahuman, Prof. P.G.R. Dharmarathne, Channaka Ellawala, Fahida Ahabarally, Ajith Siriwardena and Daya Ranasinghe.

Ruby awards for the best natural crystal, best laboratory art, and best gem studded jewellery were presented to —Minika Company, Mushan International, and Gem Paradise respectively. The Ruby award for the best gemological photography went to Janaka Hemachandra of NGJA on the last day of the fair.

The special award for the largest gem exports went to Ellawala Exports Limited while the award for the largest Jewellery exports went to Nithyakalyani Jewellers on the first day of the exhibition. The special certificate for the best service stone cutting went to Radiant Gem (Pvt) Ltd., while the award for quality products was bagged by Raja Jewellers. An award was also given to environment friendly gem mines, which was bagged by M.A. Thupakumara.

Industry on the upward move

With almost all exhibitors claiming it a success and expressing satisfaction over the turn of events, the event concluded on a high note with all parties happy. Chairman of Raja Jewellers Athula Eliyapura stated that the event was organised to international standards and exceeded all expectations. The business per se is going strong with demand for jewellery increasing steadily.

“Demand for good quality gold jewellery is gaining steadily even though it did not entirely go down either during the troubled times or thereafter. Most customers prefer the 22 carat jewellery and our business prospects look bright as we are able to cater to their demands,” Eliyapura said.

Exports of coloured gems are also gaining with the company targeting USA and New Zealand as their main markets. “Our expectation is to develop the export market from an approximate 25-50 per cent during 2011. We are aiming at achieving a considerable market share in the exportation of gems and jewellery to USA, Australia, New Zealand and Dubai in this regard,” he said.

Wellawatta Nithyakalyani Jewellery which won the prize for the best jewellery export venture in Sri Lanka claims that quality products are the only things that would give you the boost to survive tough times. CEO of Nithyakalyani A.P. Jayarajah stated that being one of the leaders in the local jewellery industry, with the possession of the largest jewellery showroom in the county, the award is one of the best achievements to-date.

“The recognition was a result of our continuous focus on quality jewellery products delivered to target markets. We were challenged by the financial downturn during 2008/09 where we witnessed drastic changes in global customer demand, however we continued to emphasis on quality products and service delivery which have made us a trusted choice for jewellery to both local and international customers. We will take all measures to continue delivering the best products to our customers,” Jayarajah said.

“We have lengthened our export markets to the U.S, Canada, Australia, Switzerland and the United Kingdom within a short time frame, and are currently in negotiations with retailers in countries like France, Germany and Italy to increase our market reach. Our dynamic and attractive website has been a plus factor for our business model, and has created considerable amount of awareness about our range of product offerings, especially to the export markets we currently cater.”

He stated that the company strongly believed in constant product innovations and introducing attractive designs to the market. Therefore the Jewellers have introduced a policy which promotes at least 50 designs a month to enhance options and meet requirements of the customer. The company has also invested in modern laser technology which facilitates its new product development process.

Importers and distributors of quality jewellery manufacturing tools, equipment and machinery Zam Jewelcrafts (Pvt) Ltd stated that the fair was a new twist to the Lankan industry having only had Facets to back them up for years. “Compared to facets this is very sophisticated and very well organised,” its Managing Director Rizni Laffir said.

“The industry is picking up slowly. There is a big difference from the year before especially with the tourism industry picking up and more buyers entering the country. Stake holders of the local industry have shown enthusiasm in the industry and are vigorously looking at improvement and quality management,” he said. Zam Jewelcrafts which imports their equipment from USA, Japan, Singapore and UK is expecting a fast turn in the industry within the next few years. “Sri Lanka is ready to go global,” he said.

“We saw a 20 per cent increase in sales for this year when compared to last year,” Chairman of Zam Gems Zam Refai said. The demand for local sapphires and rubies are fast increasing in the local market while local sapphires are a top priority in the international market. The company which has been active for the past 38 years is aiming at Japan, Singapore, China, Malaysia and USA to increase its present export portfolio, he asserted.

General Manager of Sena Gem Trading House (Pvt) Ltd. Mohamed Rizwan also agreed that the industry is picking up fast with international buyers looking at Sri Lanka for the purchase of coloured gemstones. Rizwan claims that the majority of gem exports is sent to the USA with Malaysia, UK, India and Japan followed closely by the Middle East as their new found client. “The demand for good quality precious and semi precious stones is fast increasing and we are much happy to see the progress of the industry.”

P.P. Nanayakkarawasam, partner of Expo N Lanka and founder member of Gem Corporation expressing delight over the organised event stated that Lanka must now look at value addition to the product without exporting raw materials. The picking up of the tourism industry is also a benefit for the sector, he said.

Participants who wished to remain anonymous stated that ‘Jewels Sri Lanka 2010’ was a much better trade fair than the others. “It has a kiddie’s corner so the children won’t feel left out. The prices of the items are also not quite bad. There is a wide range to choose from and the price range is good. I thoroughly enjoyed myself,” a lady with two children said.

A young couple holding hands and carrying material stated that they were doing their “wedding shopping” there. “There are so many things to buy — from necklaces to earrings to bangles and you can match stuff from various counters and buy at reasonable prices,” Niranjala, the bride to be said. Her fiancé added, “And if you have any doubts you can check the value of gold and silver jewellery at the checking counters.”

For Sunil Ratnayake the best bargain was at the emerging market sector — exhibited in Hall C. Hall C which was full of local SME products was said to be “cheap and well designed to suit any occasion.” “Sri Lankans are talented but we do not know till we see it at such exhibitions. Unlike Facets this is a good show with more opportunity for both local producers and buyers. My favourites were the designs from the south,” Ratnayake said.

Pix by Dinuka Liyanawatte