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

¶ 01 On your core query about exporting rough gems:

¶ 02 - Sri Lanka does not permit the export of rough gems produced domestically or imported for processing, except under specific, controlled circumstances. All cut and polished gems can be exported only under NGJA and Customs supervision.

¶ 03 - Research is ongoing to introduce new treatments and cutting methods to enhance value and, in particular, to curtail rough geuda exports by introducing specialized heat‑treatment and finishing methods domestically.

¶ 04 - GJRTI runs training on gem and jewellery, modern equipment, heat treatment, grading and certification, and conducts awareness and workshops to expand value‑addition capacity.

¶ 05 - Where certain low‑value or technically non‑processable material is identified as not feasible for local value addition, export is allowed only after confirmation by a committee of gemologists that domestic value addition is not possible. This is not intended to be a permanent route; the plan is to equip institutions with technologies to add value domestically over time.

¶ 06 I must note: a portion of very low‑grade rough may leak or be undercut and not sell at auctions. Some tiny or low‑value stones do not get bids at the Ratnapura auctions because they cannot be cut or polished economically. Only such identified categories are allowed out, as we cannot derive value from them locally.

¶ 07 We are also positioning Sri Lanka as an international gem trading hub with expanded certification, hallmarking, and trade‑promotion programs (Annex 02). Ceylon Blue Sapphire retains top global demand; Sri Lanka remains among leading gem producers and is recognized for ethical and sustainable mining practices. We compete with Bangkok, Hong Kong and Dubai; we are taking measures to build our own regional hub capacity.

¶ 08 There is risk that undisclosed synthetic or irradiated stones entering markets can erode consumer trust and harm Sri Lanka’s reputation. NGJA promotes certified purchases to counter this.

¶ 09 Our main target is to earn USD 1–2 billion annually from gem and jewellery exports by 2030. Currently, regulated exports via NGJA are around USD 350–400 million, while experts estimate over USD 1 billion may be leaving through unregulated channels. Our roadmap aims to bring all exports into a legal, liberalized framework and facilitate exporters. The NGJA’s 2025–2029 strategic plan targets making gem and jewellery a premier export sector (Annex 03). NGJA also runs multiple programs to uplift SMEs, producers, and artisans, recognizing both large and SME stakeholders as key (Annex 04).

¶ 10 Regarding your Question No. 8 and the phrase “friendlier tax policy,” I initially misunderstood “friendly.” If you mean user‑friendly:

¶ 11 8. Preventing illicit gem outflows is a priority. We have ongoing discussions with Customs and will strengthen technical and human resources across agencies to curb unlawful exports. Compared with Thailand and Hong Kong, our procedures can appear complex; however, exporters have submitted proposals. We will review export procedures and tax policies with all stakeholders.

¶ 12 We already have a Sector Advisory Committee including all gem associations; many of their proposals are being adopted. We will also introduce a system of State recognition to encourage compliant exporters. Our aim is a liberalized gem and jewellery industry.

¶ 13 9. NGJA does not levy taxes; it charges service fees as per Gazette No. 2324/33 of 22.03.2023 (Annex 05). Annexes 1–5 are tabled.

¶ 14 Customs fees for gem import/export valuation are as follows (plus Rs. 250 IT fee): - Invoice value under Rs. 100,000: Rs. 300 - Rs. 100,000 – Rs. 500,000: [as per schedule] - Rs. 500,000 – Rs. 1,000,000: [as per schedule] - Above Rs. 1,000,000: [as per schedule]