We are very grateful to all the staff at the National Gem and Jewellery Authority for giving us kind permission to reproduce this article from Gem Talk.
The outlook for 2008 is tempered by a high level of uncertainty over world market conditions. The economic conditions in the U.S. could continue to impact the gem and jewelry exports. Nevertheless we expect strong demand from China , Russia, India and the Middle East to sustain pricing for larger and better quality stones.
Despite the adverse economic environment around the globe ;Sri Lankan Gem, Diamonds and Jewelry exports notched up USD 195.16 million ,recording an overall growth of 12% in the first five months of 2008 , when compared with the corresponding period in 2007, which stood at USD 174.67 million.
The positive announcement by the government in the 2008 budget proposals; much welcome by the trade ; would cushion the impact created by the downturn in the US market. The recently introduced customs procedure which would enable gem importers to clear their merchandise free of any duties, taxes and other physical levies would undoubtedly encourage local dealers to source their requirements from producing countries such as Madagascar, Myanmar, Tanzania, Mozambique etc.
Over the years Sri Lanka Gem and Jewellery industry has shown great resilience and has displayed high capability to bounce back quickly from difficult and tight situations . We should strive hard to make the best use of “The Facets- Sri Lanka” the 18th Sri Lanka , International Gem and Jewellery Show scheduled to be from 6th to 9th Sept 2008, to showcase our products to the entire world.
Through the combined efforts of the Sri Lanka National Gem and Jewellery Authority and the private sector ; members of the trade should seize the opportunity to increase business in this soft market.
The Gem, Diamond and Jewellery sector has recorded an overall growth of 12% during the first five months of 2008 earning a revenue of USD 196.16 million in comparison with the corresponding figure of USD 174.67 million in 2007.
The slowdown in the United States economy has adversely affected the Sri Lanka gem and jewellery exports. The USA used to account for 28 to 34% of Sri Lanka’s gem and jewellery exports. In order to mitigate this situation we are looking actively at markets outside the USA , such as India, China, Russia, Middle East and Europe.
In its endeavors to promote the industry , the National Gem and Jewellery Authority has finalized all the arrangements to establish the much aviated gem testing laboratory with the participation of the Sri Lanka Gem and Jewellery Association. This state of the art Laboratory, Lanka Gemological Laboratory, (Pvt) Ltd. to be set up, will be in a position to issue testing reports distinguishing natural gems from heat treated stones as well as identifying and certifying rare gemstones in accordance with international standards. Apart from this it would help to save foreign exchange often spent by many local gem exporters in getting their gemstones tested in Foreign Laboratories.
A credit guarantee scheme ; which has been a long felt need of the industry ; is to be introduced shortly which would enable SME’s in the sector to secure financial assistance to expand their operations . I am happy to state that the National Gem and Jewellery Authority continues to play a leadership role facilitating the industry on a focused path while upholding the best interests of all the stakeholders.
National Gem and Jewellery Authority