By: Staff Writer

January 08, Colombo (LNW): Building on the momentum of its first two highly successful editions, Gem Sri Lanka 2026 is set to become a landmark event for the country’s gem and jewellery industry when it unfolds on 7, 8 and 9 January 2026 at the prestigious Shangri-La Colombo.

Organised by the Ceylon Gem and Jewellery Traders Association (CGJTA) Sri Lanka’s largest industry body representing more than 2,000 members the exhibition has rapidly evolved from a focused trade showcase into an internationally recognised marketplace for coloured gemstones.

The shift to Shangri-La Colombo marks a significant milestone in the exhibition’s journey. What began as a niche industry initiative has grown into a major global event, reflecting the expanding scale and international relevance of Sri Lanka’s gem trade. With over 100 world-class exhibitors already confirmed, Gem Sri Lanka 2026 is expected to be the largest display of coloured gemstones ever held in the country.

Organisers anticipate double the number of foreign buyers and trade professionals compared to previous editions, alongside a wider international audience. This surge in participation reinforces Sri Lanka’s reputation as one of the world’s most trusted and admired sources of premium sapphires and coloured gemstones.

Adding to the event’s stature, Prime Minister Dr. Harini Amarasuriya will attend as Chief Guest at the official inauguration, underlining the national importance of the gem and jewellery sector as both a cultural legacy and a key contributor to the economy.

Visitors can expect an immersive industry experience, featuring an exceptional collection of sapphires and high-value coloured gemstones. A major social highlight will be “Gala 2026 – Brilliance and Beyond,” designed as a glamorous networking platform that brings together traders, international buyers and industry leaders.

Another defining moment will be the launch of a landmark publication titled “The Sapphire Legacy,” chronicling Sri Lanka’s centuries-old association with gemstones and its enduring global influence.

With its expanded scale, prestigious venue, high-level leadership presence and heritage-focused initiatives, Gem Sri Lanka 2026 represents far more than a trade exhibition. It is a powerful statement of confidence in Sri Lanka’s gem industry and its future direction.

As global attention turns to Colombo this January, Gem Sri Lanka 2026 is poised to reaffirm the island’s position at the pinnacle of the international gem and jewellery trade.

Sri Lanka’s gem and jewellery sector is entering a decisive phase, shaped by renewed global demand, growing foreign exchange needs and increased competition among gemstone-producing nations. Events such as Gem Sri Lanka 2026 highlight how the industry is repositioning itself not only as a heritage-driven trade, but as a modern, export-oriented sector aligned with global standards.

A key challenge today is market access and buyer confidence. International buyers increasingly seek transparency, traceability and streamlined trade processes. This is where FACET plays a crucial role. By supporting industry facilitation, structured engagement and trade connectivity, FACET helps bridge local traders with global markets, enabling smoother transactions and stronger international trust.

Platforms like Gem Sri Lanka, supported by facilitation mechanisms such as FACET, allow Sri Lanka to showcase scale, quality and credibility in one setting. This collective approach strengthens bargaining power, enhances value addition and positions the industry to contribute more effectively to export earnings at a time when non-debt foreign exchange inflows are critical.

By: Staff Writer

January 08, Colombo (LNW): Sri Lanka’s proposal to transform the Employees’ Provident Fund (EPF) from a lump-sum retirement payout into a monthly pension marks one of the most significant potential reforms in private sector social security. Announced in early 2026 and reiterated in Parliament by Deputy Minister of Labour Mahinda Jayasinghe, the initiative aims to provide long-term financial stability for millions of private sector workers who currently exit employment with a single payment and no guaranteed post-retirement income.

The rationale behind the proposal is clear. While the EPF was designed as a safety net for retirement, lump-sum payments often expose retirees to financial risk. Poor financial planning, inflation, rising healthcare costs, and longer life expectancy mean that many retirees exhaust their EPF savings within a few years. In contrast, a pension-style system would provide a steady monthly income, similar to what public sector employees receive, ensuring sustained income security throughout retirement.

Under the proposed framework, EPF and the Employees’ Trust Fund (ETF) may be restructured into a part-pension fund under the Treasury. Retiring members would have options: withdraw a portion as a lump sum while converting the balance into a monthly pension, or withdraw the full amount at retirement. Officials have noted that legislative amendments to the EPF Act would be required, as the current structure does not qualify as a pension scheme. Discussions on funding mechanisms and governance reforms are already underway, with amendments anticipated following policy groundwork laid in late 2025.

From a feasibility standpoint, the reform has several advantages. Sri Lanka’s ageing population and shrinking workforce make pension sustainability a national priority. Converting EPF into a pension-style system could reduce future elderly poverty and lessen reliance on state welfare. Pooling funds over longer periods may also allow more strategic, long-term investments, potentially improving returns for contributors.

However, viability depends heavily on governance, transparency, and trust. EPF funds have historically been managed by the Central Bank, and the proposal suggests moving oversight under the Treasury an idea that raises concerns about political interference. Past attempts, notably in 2011, collapsed amid public protests fueled by fears that workers’ savings would be used to finance government deficits.

There are also structural challenges. Pension liabilities are long-term commitments, requiring actuarial discipline, robust regulation, and insulation from short-term fiscal pressures. Without these safeguards, a pension scheme could become financially unsustainable or erode contributor confidence.

In essence, transforming the EPF into a pension fund is conceptually sound and socially beneficial, but its success hinges on design integrity. If implemented with strong legal protections, member choice, and transparent management, it could redefine retirement security for Sri Lanka’s private sector. Without them, it risks becoming another well-intentioned reform undermined by execution.

By: Staff Writer

January 08, Colombo (LNW): Sri Lanka’s continued reliance on the IMF-led debt restructuring framework may offer short-term stability, but critics warn it also carries serious long-term risks particularly if the country deviates from promised reforms or if the programme itself proves too rigid to absorb new shocks.

The ongoing restructuring rests on strict targets set by the IMF’s Debt Sustainability Analysis, which aims to restore market confidence and prevent a repeat of the 2022 default. Yet even the IMF has acknowledged that Sri Lanka’s recovery path is “knife-edged,” with a significant probability of renewed debt distress if growth falters or external shocks intensify.

Recent cyclone damage has exposed these vulnerabilities. Reconstruction is expected to cost between US$6–7 billion, far exceeding available foreign exchange reserves. At the same time, external debt servicing continues to absorb a large share of government revenue, leaving little room for emergency spending without breaching IMF targets.

Supporters of the programme argue that deviating from IMF conditions would jeopardise access to concessional financing and scare off investors. Any unilateral suspension of debt repayments, they warn, could undermine credibility and delay Sri Lanka’s return to international capital markets.

However, critics counter that rigid compliance carries its own dangers. Continuing repayments while borrowing more for recovery simply shifts the burden into the future, increasing the risk of another restructuring. Moreover, heavy dependence on external discipline limits the government’s ability to respond democratically to voter demands for social protection, climate resilience, and inclusive growth.

There is also the question of fairness. Private creditors, particularly holders of international sovereign bonds, benefited from high interest rates during boom years. If Sri Lanka is forced to maintain harsh fiscal adjustments to satisfy these creditors, public trust in both domestic institutions and the international financial system may erode further.

Deviating from the IMF programme is not without cost, but neither is blind adherence. Failure to adapt targets to new realities such as climate disasters or global downturns could lock Sri Lanka into a cycle of low growth, social strain, and repeated debt renegotiations.

The debate ultimately centres on sovereignty and risk-sharing. A more flexible approach, critics argue, would involve deeper debt relief, temporary suspension of repayments during crises, and greater recognition of climate-related losses. Without such adjustments, Sri Lanka may technically remain “on programme” while remaining economically fragile.

As restructuring talks continue, policymakers face a stark choice: prioritise credibility with creditors at all costs, or recalibrate the programme to ensure long-term sustainability and social stability before another crisis forces the issue.