NGJA targets $ 100–200 million YoY export revenue boost
The Morning: The National Gem and Jewellery Authority (NGJA) is targeting a $ 100–200 million Year-on-Year (YoY) increase in official export revenue figures in 2026 as it seeks to combat the sale of local gems through unofficial and illegal channels.
Speaking to The Sunday Morning Business, NGJA Chairman Dr. S.P. Chaminda revealed that they were targeting export revenue of $ 500–600 million in 2026 from the export of gems, diamonds, and jewellery, a considerable increase from the approximately $ 388 million achieved in 2025.
He further revealed that their long-term target remained achieving $ 1 billion in export revenue from the export of gems, diamonds, and jewellery.
Elaborating on how they planned to achieve this increase in gem exports, he stated: “The issue in Sri Lanka is that our reported gem exports are quite low because of the prevalence of gem exports through illegal pathways. We are trying to decrease the export of gems through such illegal channels by sorting out their income tax issues.”
Chaminda further revealed that a primary reason for the use of illegal channels by gem exporters in Sri Lanka was the issue surrounding the current method of levying income tax on their foreign remittances.
“There is an issue in the industry in that there is difficulty in quantifying the expenses for gem mining. In other industries such as apparel, we are aware of the exact cost per unit. So if you are aware of your cost per unit, you can deduct it and show your profit.
“It is difficult to do that in gem mining. There is a cost involved in mining a gemstone, but it is difficult to calculate it due to the nature of the industry. Some gems could have been mined at an expense of Rs. 100, while another gemstone would require an expenditure of around Rs. 10 million,” he stated.
Accordingly, he claimed that the cost of mining a gem varied from gem to gem, making it difficult to calculate the income tax on the income from their sale. He added: “It would be unfair to tax the income generated from the sale of a gem that required an expense of around Rs. 10 million in the same manner as one incurring an expense of Rs. 100.”
Accordingly, he stated that it was a priority to develop proper policies for the levying of income taxes, adding that once such policies were introduced, more stringent measures could be taken to completely combat the export of gems through illegal channels.
According to statistics published by the Central Bank of Sri Lanka (CBSL), the country earned $ 388 million in 2025 in gem and jewellery exports, up 1.6% YoY from the $ 381.9 million generated in 2024.
OSL take:
Sri Lanka’s gem and jewellery industry is being targeted by local authorities as an emerging key export of the country that could earn impressive revenues. The industry has been on a growth path through the years, especially given the high quality and standards of Sri Lankan gems and jewellery, and has shown an increase in the export sector as well as serving as a field that promotes the country’s tourism industry as well. The strong trade ties enjoyed by Sri Lanka with many foreign countries have also helped boost the country’s gem and jewellery industry. However, the revenue targets set on the country’s gem and jewellery industry have presented many business/investment opportunities to foreign businesses/investors on the lookout for lucrative ventures in Sri Lanka. While they can explore opportunities directly, they could also look at expanding into Sri Lanka’s gem and jewellery industry through partnerships or joint ventures with businesses already engaged in the industry.
| Article Code : | VBS/AT/20260317/Z_2 |