Sri Lanka sets sights on reclaiming true value of Ceylon Sapphires
The Morning: Sri Lanka, long celebrated for its legendary Ceylon Sapphires, is embarking on a bold and necessary mission: to eliminate grey market exports, restore transparency, and ensure that the true value of its gemstone heritage benefits the nation and its people.
Despite being one of the world’s most renowned sapphire sources, Sri Lanka officially records only around $ 300 million in sapphire exports annually. In contrast, the global sapphire trade including both jewellery and industrial applications is valued at well over $ 3 billion, with some estimates stretching much higher when synthetic markets are considered.
This disparity points to a deeper issue: a significant portion of Sri Lanka’s sapphires leave the country unofficially or are re-exported through third-party nations, where their true commercial value is realised. The result? Lost revenue, lost jobs, and a weakened economy, while others profit from Sri Lanka’s natural treasure.
As the country looks to reset its economy and assert greater control over its natural resources, the sapphire industry has become a key area of reform. Eliminating grey exports is not just about economics; it’s about national dignity, fair trade, and sustainable development.
Efforts are now underway to:
· Promote direct trading relationships between Sri Lanka and international brands
· Ensure all sapphire-related payments flow into Sri Lanka, not through offshore middlemen
· Introduce stricter certification and traceability frameworks, protecting both the country and ethical buyers
This shift is seen as essential to reclaiming billions in lost value and ensuring that every sapphire exported carries with it a story of local benefit, responsibility, and national pride.
Supporting this national mission are emerging entities that align with its goals.
One such example is Arumin, a new sapphire brand developed to support ethical, transparent, and locally beneficial sapphire trade. Rather than merely exporting stones, Arumin operates on a mine-to-market model, ensuring that each gem’s journey – from ground to showroom – is conducted in a way that keeps more of the value chain within Sri Lanka.
Arumin’s approach includes:
· Working with local communities and sharing a portion of each sapphire’s value with workers
· Practising land regeneration in mining zones, ensuring sustainability
· Advocating internationally for direct sourcing from Sri Lanka, encouraging brands to bypass opaque trading routes
The initiative is designed not just as a brand, but as a framework for what a responsible Sri Lankan sapphire trade can look like – one that enhances livelihoods, strengthens the economy, and restores integrity to an industry that has long operated in the shadows.
Reforming the sapphire industry could unlock billions in foreign exchange, improve rural livelihoods, and establish Sri Lanka as a model for ethical gemstone sourcing. It could also send a powerful signal to global investors that Sri Lanka is ready to manage its resources wisely and build a fairer economic future.
For the people of Sri Lanka, this shift means:
· More jobs in gem mining, cutting, certification, and design
· Greater investment in local infrastructure and training
· Pride in knowing that Ceylon Sapphires bring global admiration and local prosperity
OSL take:
Sri Lanka’s gem and jewelry industry while on a growth path has much untapped potential presenting a host of business/investment opportunities to foreign businesses/investors. Sri Lanka’s gems, most popularly known as Gems of Ceylon in the past, have been synonymous with high quality and standards. Local authorities are currently working on regaining the top slot in international markets for Sri Lankan gems and jewelry. Also, realizing the increasing business potential in Sri Lanka’s gem and jewelry industry, Sri Lankan authorities have also set ambitious revenue targets for the country from the industry. The ongoing awareness campaigns in foreign markets and Sri Lanka’s strong trade ties with many foreign countries have all helped have also given a boost to Sri Lanka’s gem and jewelry industry. Foreign businesses/investors could therefore confidently explore the high quality gems and jewelry in Sri Lanka while also looking at the expanding business/investment opportunities in the local gem and jewelry industry.