The Hon. Ravi Karunanayake

¶ 01 Hon. Speaker, first let me wish our football team success for beating Turkmenistan and advancing from 196th place.

¶ 02 Under SO 27(2), before my question I note: it seems time is being taken to answer; we will see from the response.

¶ 03 Transformation of Gem Industry to an Export-Oriented Industry

¶ 04 Hon. Speaker, Sri Lanka, known as the “Island of Gems,” has for centuries produced sapphires, rubies and other rare stones celebrated in royal courts and international chronicles. Yet despite this exceptional natural wealth, our gem industry remains underdeveloped relative to its vast potential. At a time of acute need for foreign exchange and stable jobs, this sector requires urgent attention and reform.

¶ 05 Successive governments have said gems and jewellery can become a multi-billion-dollar enterprise, but ground reality differs: mining is constrained; value addition is weak; market access is limited. Many gems leave the country in rough form, preventing higher earnings. Allegations of inefficiency, shortages, weak oversight, and irregularities in storage and stock handling have eroded public trust.

¶ 06 Today, gems leave the country, but official foreign exchange does not adequately return. High taxes have discouraged the industry. I seek to revive and relaunch it.

¶ 07 We must also examine whether the sector faces excessive taxation and over-regulation. Traditionally, gem mining in Sri Lanka is a small-scale, livelihood-based, private activity passed down generations. Excessive licensing, multiple taxes and regulatory hurdles push small miners and traders out, driving many into informal or illegal channels.