Sri Lanka records increase in gem, diamond and jewellery exports
Sri Lanka recorded a two-fold increase this year in the export of gems, diamonds and jewellery in comparison to the corresponding period in 2020. Officials have reportedly hinted that full year performance will be robust even though the industry remains wary of recent policy changes.
As per provisional data, gem, diamond and jewellery exports in the first seven months of 2021 amounted to US$ 183 million as against a very low US$ 90 million in 2020. The total exports in 2020 amounted to US$ 211 million, down 9% from 2019. In 2019, the first seven months exports amounted to US$ 175.6 million, according to local media reports.
Sri Lanka is reportedly the ninth-largest exporter of precious stones to the global market and one of the five most important gem bearing nations in the world.
Given broader incentives in 2020, officials are confident that export performance this year will be higher than 2020, though it may still lag behind the US$ 306 million achieved in 2019, the Daily FT reported.
In September last year, on a directive by Sri Lanka’s President Gotabaya Rajapaksa, the 14% income tax on gem and jewellery sales was removed and a loan scheme of Rs. 1 million at 4% interest rate for jewellery manufacturers and traditional goldsmiths was also introduced as an additional measure to boost the industry.
This overall support was expected to increase gem, diamond and jewellery exports, with the industry initially setting a target of US$ 1 billion for 2021.
However, the forecast was revised down to US$ 500 million due to the fall in tourist arrivals, travel restrictions, B2B trade exhibitions and other challenges, the news report added.
OSL take:
Sri Lanka’s overall exports sector has recorded a growth momentum despite challenges posed by the global Covid 19 pandemic. It is indicative of the strength and resilience of Sri Lanka’s economy. The country’s economy has shown great resilience to external and internal challenges through the years and is once again on the path to recovery after facing the impact of the pandemic. The many trade agreements as well as trade concessions enjoyed by the country have also helped boost the Sri Lanka’s exports sector. With the government of Sri Lanka launching an aggressive development programme covering all key economic sectors and promoting the country as a business/investment destination in the South Asian region, foreign businesses/investors could confidently explore opportunities in Sri Lanka, especially in the exports sector.
| Article Code : | VBS/AT/20210723/Z_1 |