Sri Lanka’s gem and jewellery industry has welcomed a new government Gazette as a watershed reform aimed at breaking longstanding bottlenecks and fuelling global competitiveness.
Unlocking Rough Gem Access via New Procedures
The Gazette introduces a streamlined procedure for importing rough gemstones—historically, a cumbersome blockade hindering the industry’s raw material access. By enhancing transparency and aligning import processes with global trading hubs, Sri Lanka aims to inject fresh momentum into its gem value chain.
Sector Poised for Export Surge
Current export data underscores the reform’s timely relevance. In the first five months of 2025, Sri Lanka’s merchandise exports grew by 5.5%, totaling US $5.34 billion, contributing to an overall export rebound of 7.1% to US $6.93 billion
Within the government’s broader export strategy, gems and jewellery are slated to contribute US $650 million toward the US $18.2 billion 2025 export target
.However, the National Gem & Jewellery Authority (NGJA) notes that only around US $360 million—a fraction of potential earnings—is currently captured via formal channels; the remaining 90% of gem exports still flow through informal routes . The formalization push aims to increase traceability, tax contributions, and value capture.
Tackling Industry Bottlenecks and Structural Challenges
Beyond raw material access, the industry faces other headwinds. Parliamentary discussions from 2023 flagged delays in securing mining permits, an obstructive licensing process, and constraints caused by the gold import ban—especially impacting jewellery businesses serving tourism markets
Policy recommendations emerging from these discussions include issuing licenses through consolidated, weekly regional one-stop centres, revisiting the gold import ban to support foreign exchange–earning exporters, and scaling up skill development via localized training institutes to counter low industry entry.
Regulatory Framework: Formal Oversight and Licensing
Formal gem exports are tightly regulated. Exporters must obtain a valid Gem Dealers License from the NGJA—each tied to specific stock values—and process shipments via designated NGJA centres at Bandaranaike International Airport (Katunayake) or Rathnapura, under Customs supervision
. Documentation is intensive: original typed invoices on official letterhead, explicit inclusion of NGJA license and file numbers, and clear FOB valuation are mandatory
Other requirements include multiple invoice copies distributed across various authorities, service fee waivers for exhibition-bound goods (with a Rs 15,000 deposit and 0.25% service levy for returns), and collateral-based waivers for consignment exports
Industry Response and Forward Path
The Sri Lanka Gem and Jewellery Association (SLGJA) applauded the Gazette as a “milestone moment,” praising the collaborative work of President Anura Kumara Disanayake, Minister Sunil Handunneththi, NGJA, the Export Development Board, and the ministry secretaries. They see the reforms as not only export catalysts but also as tools to attract investment and drive sustainable growth across the value chain.
Conclusion
Sri Lanka’s gem industry is now at a turning point. With rough-gem import barriers easing, formalization ramping up, and regulatory clarity improving, the sector is well-positioned to reclaim its place as a key contributor to the nation’s export ambition. The challenge now lies in swift execution, capacity expansion, and ensuring that value creation is fully captured within the island’s shores.
