The Hon. Sunil Handunnetti - Minister of Industry and Entrepreneurship Development

¶ 01 Hon. Presiding Member, I thank Hon. Hesha Withanage.

¶ 02 1) No. Facilities have not been withdrawn.

¶ 03 2) Since the new Government took office, we have removed political interference affecting both large-scale and traditional miners and officials. We are providing all facilities needed to operate lawfully. We have identified a programme to resolve long-standing issues faced by traditional miners.

¶ 04 We are aware that licensing involved significant under-the-table dealings. We have sworn testimonies regarding corrupt officials and politicians. I propose a special presidential investigation unit to conduct an independent probe; I have discussed this with the President. Large machinery was deployed, lands—including those belonging to temples—were taken over, and traditional miners were crowded out through political interference. A comprehensive investigation will be undertaken.

¶ 05 3) Yes. We are acting swiftly with a structured plan:

¶ 06 - Through the Ministry’s Policy Formulation Committee (Gem and Jewellery and Related Industry Sector Advisory Committee), comprising exporters and industry representatives, we are preparing measures to minimize capital, raw material, land and other constraints faced by traditional miners. - A safeguard manual on mine safety has been prepared and will be implemented. - We are expanding compensation schemes for mining accidents and introducing proper insurance coverage. - A public complaints window is available via the NGJA website (www.ngja.gov.lk) and a hotline 0715507777. - Every Monday is a public day at the Ministry to resolve presented issues.

¶ 07 Additionally, the NGJA legal unit in Ratnapura is very weak. Undervaluation of gems for export has occurred, with involvement of former politicians and officials. Reported annual gem export revenue of around USD 350 million is not credible; the sector has potential for USD 1.5–2 billion if properly valued and routed. We will institute correct valuation mechanisms. We recently held two major Asia-Pacific gem exhibitions—one in Colombo, one in Beruwala—with the President attending.

¶ 08 On VAT: value addition in gem processing triggers VAT, especially for imported rough. We are discussing relief with the Finance Ministry and hope to resolve this soon.