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

¶ 01 Hon. Deputy Speaker, as today is a day for condolence motions and many family members are present, I will proceed briefly. I will answer the Question raised on 10.10.2025 under Standing Order 27(2) by Hon. Ravi Karunanayake regarding the National Gem and Jewellery Authority (NGJA).

¶ 02 1. According to Sri Lanka Customs data, from 2022 to 2024, Sri Lanka imported approximately 46,816 kg of rough gems under HS 7103.10. NGJA officers inspected these consignments at importer premises and observed about 29,500 kg comprised semi‑precious garnet and similar low‑value material. From these rough imports, 1,660 kg of cut and polished stones were exported. About 8,260 kg had no value addition potential, and around 7,392 kg were waste or unprocessed stones. A proper verification mechanism to confirm that rough gems imported for re‑export are duly re‑exported is being finalized jointly by NGJA and Customs. A detailed report is in Annex 01.

¶ 03 2. Approximately two‑thirds of Sri Lanka’s land mass — around 70 per cent — is geologically prospective for gems, but only about 20 per cent has been explored to date, leaving significant potential for growth and sustainability. The Gem and Jewellery Research and Training Institute (GJRTI) has mapped gem‑bearing locations in 19 DS divisions across Galle, Matale, Kalutara, Kegalle, Monaragala and Badulla, and issued mining licenses to several private lands in Tawalama (Galle) after exploratory digs.

¶ 04 NGJA and GJRTI, with the Geological Survey and Mines Bureau, domain experts and universities, are preparing an integrated program to enhance scientific exploration, including in areas under Government development projects, around reservoirs, and private company lands identified with gem potential. NGJA intervenes to lawfully extract from unauthorized sites and is instituting processes to regularize and recover such resources.

¶ 05 You would recall, even during the recent dredging of Gregory Lake in Nuwara Eliya, gems were found. Notably, many mid‑country plantation lands are now recognized as gem‑bearing; we are discussing utilization modalities with the plantation companies.

¶ 06 On licensing costs: NGJA has simplified the mining license process via a one‑stop centre, enabling issuance within 21 days of complete submissions. The standard license fee is approximately Rs. 13,757.85 for a single‑ownership land and Rs. 17,991.10 for co‑ownership. While mining itself requires investment depending on whether traditional or mechanized, there is no excessive fee burden. In 2021, 4,434 mining licenses were issued; by 2024 this rose to 7,897 — a 78 per cent increase — indicating no exodus from the industry.

¶ 07 Sri Lanka does not currently conduct international rough gem auctions domestically; private sector conducts auctions for cut and polished stones locally. We held our national gem exhibition in Ratnapura this year. International auctions typically trade rough; Sri Lanka promotes value‑added cut and polished exports, hence no routine rough auctions locally. With EDB and the Central Bank, NGJA is studying hosting international auctions for cut and polished gems in Sri Lanka. Colombo, Ratnapura, and Beruwala already host international‑standard shows that promote sales and the industry. We are aligning our events with Bangkok, Hong Kong and Singapore calendars, engaging their exhibition associations, to be included in the International Gem and Jewellery Exhibition Calendar, improving buyer access and price realization.

¶ 08 On foreign currency: Anyone bringing over USD 10,000 into Sri Lanka should declare it on the Customs declaration. Under the Foreign Exchange Act, accepted foreign currency may be brought in without a cap if declared via the Customs form. For transparency and AML/CFT objectives, bank‑based transactions are encouraged, and facilities exist.