Gem and Jewellery Sector Calls for Reforms amid Challenges and Declining Exports

By: Staff Writer

October 10, Colombo (LNW): The Sri Lanka Gem and Jewellery Association (SLGJA) has issued a renewed call for urgent reforms as the domestic industry struggles with a downturn driven by soaring gold prices and persistent policy challenges that hinder growth.

Local jewellery sales have experienced a notable decline, while exporters are grappling with a complicated regulatory framework that has reduced their global competitiveness. The impact of these challenges is evident in the sector’s export performance, which only saw positive year-on-year (Y-O-Y) revenue growth in February and May 2024.

For the first eight months ending in August 2024, the sector recorded cumulative revenue of $214.31 million, marking an 18.69% Y-O-Y decline compared to the same period in the previous year.

According to the SLGJA, this decline is directly tied to inconsistent government policies that have made it increasingly difficult for businesses to operate efficiently.

The SLGJA’s newly appointed President, Akram Cassim, last week urged for immediate policy reforms and the promotion of what he termed as “a Sapphire Experience.” Cassim outlined his vision at the SLGJA’s Annual General Meeting, aiming to propel the industry forward, address challenges collectively, and leverage the unique legacy of the Ceylon Sapphire.

Acknowledging the numerous challenges ahead, he called for unity across all areas of the gem and jewellery trade to tackle common issues and enhance the industry’s prospects. He highlighted the importance of collaboration across all segments of the trade—from Ratnapura, the center of gem mining, to the gem trading hubs of Beruwela, and the gold and jewellery craftsmanship found in Kandy and Sea Street—to drive the sector’s growth.

Cassim pointed out the urgent need for policy reforms to reverse changes that have hampered growth, reduced global competitiveness, and pushed businesses to consider relocating their operations abroad.

“If we can implement urgent reforms and reverse policies that have negatively impacted our industry, we can create a business-friendly environment that will enable our trade to thrive,” he stated. Cassim expressed a strong commitment to working closely with the new government and other authorities to cultivate a business climate conducive to the growth of this vital sector.

A key highlight of Cassim’s address was the proposal to integrate the gem and jewellery industry with the expanding tourism sector.

He suggested forming strategic partnerships with Sri Lanka Tourism and Sri Lankan Airlines to enhance the experience of every tourist visiting the island, offering a unique opportunity to position the country as a premier destination for gemstone shopping and cultural experiences.

“Let’s create an amazing Sapphire Experience for tourists visiting this Island,” Cassim proposed, emphasizing the unmatched potential to capitalize on the country’s rich heritage as a source of the world’s finest blue sapphires.