Gem and jewellery industry upbeat on doubling export earnings to US $ 500mn this year

By Nishel Fernando
Despite the continuous absence of policy support and a clear long-term strategy, Sri Lanka’s gem and jewellery industry is upbeat on nearly doubling the exports earnings to US $ 500 million this year, driven by the rising global demand.

“Our exports nearly reached US $ 300 million last year. For this year, we are expecting at least US $ 500 million,” Sri Lankan Gem and Jewellery Association (SLGJA) Chairman Ajwad Deen told Mirror Business on the sidelines of an event held in Colombo on Tuesday.

He noted that the demand for sapphires and other precious stones is moving up globally.

In 2021, Sri Lanka’s gems and jewellery exports and diamond re-exports recovered by 54.2 percent to US $ 279.8 million, after falling to US $ 211.2 million in 2020.

By mid-last year, the gemstone prices globally rose by a record 50 percent from a year ago, due to the rising demand and shortage 
of supplies.

The gemstone prices had increased by about 50 percent from March of 2020 to mid of 2021. By end-last year, the price of a 10 carat Sri Lankan pink sapphire doubled to US $ 30,000 per a carat, from US $ 15,000 a year ago while the large pink sapphires above 15 carat completely disappeared in the market.

However, the SLGJA pointed out that the country has the potential to become a key gem and jewellery hub, if the policy consideration is given based on a strategic growth plan.

“Given the prominence Sri Lanka holds as one of the five most important gem-bearing nations in the world, the industry has the scope to become one of the largest forex earners for the country. However, the lack of a strategic growth plan and absence of policy supporting, the growth of the industry restrain the sector from achieving its true potential in comparison to countries such as Dubai, Thailand and Hong Kong,” the SLGJA said.
The industry has proposed a 10-year strategic development plan for policymakers.