Sri Lanka gem and jewelry exports eye Middle East and China
The Morning: Sri Lanka is eyeing the Middle Eastern countries and China for gem and jewelry exports as its major markets have been affected due to the global recession, The Daily Morning Business learnt.
Speaking to The Daily Morning Business, an officer from The National Gem and Jewelry Authority (NGJA) stated, “With the global recession, the demand from markets such as the US has been slightly reduced. As a solution for this, we have increased promotions for Middle Eastern countries and China. Since countries such as China have not been affected by such an economic situation.”
The industry has been impacted due to the export demand reduction from countries that have been affected due to the global recession. Therefore, the said countries have been prioritized, he further noted. He also added that in order to promote gems of Sri Lanka, NGJA actively participates in international exhibitions to showcase industry’s potential in exports while currently Sri Lanka participates in one such exhibition in China.
NGJA Gem Segment Vice Chairman Punsiri Tennakone also told The Daily Morning Business, “We facilitate participation in foreign fairs and there are plans to promote locally as well as to seek business from tourists.
The NGJA officer said, however, supply chain disruptions due to decreased supply while imports have decreased from Madagascar as its cost has been increased with the taxation. Therefore, a paper has been submitted to the Parliament already in this regard for few changes to mitigate such supply chain disruptions to which he said, “it will change as quickly as possible.”
During a recent discussion held at the Presidential Secretariat in order to address issues within the said industry, President Ranil Wickremesinghe also urged its officials to swiftly provide comprehensive plans for achieving the country’s objective of bolstering annual export earnings through enhancements in exports and re-exports.
NGJA Gem Segment Vice Chairman Punsiri Tennakone speaking to The Daily Morning Business said that the current target set for gem exports this year is $ 1 billion and they are optimistic.
According to the Export Development Board (EDB) of Sri Lanka, the major markets for Sri Lanka in exporting gems are US, Thailand, Switzerland, Hong Kong, United Arab Emirates, India, France, United Kingdom (UK), Singapore and Macau while major markets for Sri Lankan jewelry exports are US, Switzerland, Australia, UK, UAE, Germany, Japan, India, Hong Kong and Qatar.
OSL take:
Sri Lanka’s gem and jewelry industry is one of the fastest growing industries in the country presenting a host of new business/investment opportunities. The government of Sri Lanka and the local gem and jewelry authorities are focused on uplifting, developing and diversifying the industry. Sri Lanka’s gem and jewelry industry was a thriving industry in past with historical accounts of Gems of Ceylon making their way to Royal households in many parts of the world. Local authorities are now working to ensure that the country’s gem and jewelry industry would once again regain the glory days of the industry. The many trade agreements as well as trade concessions enjoyed by the country have also helped boost Sri Lanka’s gem and jewelry industry. Given the positive trends in Sri Lanka’s gem and jewelry industry, foreign businesses/investors could explore the growing opportunities in the industry. Foreign businesses could also look at forming partnerships or joint ventures with local businesses engaged in the industry with the aim of expanding.
| Article Code : | VBS/AT/20230828/Z_11 |