FACETS to help gem and jewellery industry overcome challenges

Over the course of its long history, the Sri Lankan gem and jewellery industry has faced a number of obstacles. Following the Easter Sunday Attacks, the sector is facing one of its biggest challenges to date. We met with the Sri Lanka Gem & Jewellery Association Chairman Ahsan Refai to discuss the current status of the industry and the

Sri Lanka Gem & Jewellery Association Chairman Ahsan Refai

means by which it will rise above its current predicament, as well as the role that the FACETS International Gem & Jewellery Exhibition will play in the endeavour. 

Q: Describe briefly the history of the Sri Lankan gem and jewellery industry?

A: The Sri Lanka gem and jewellery industry boasts a celebrated history of over 2000 years. Over the centuries, famed travellers and scholars such as Pliny the Elder, Ptolemy, Marco Polo and Ibn Battuta all wrote of the beauty, variety and quantity of the gemstones found on the island. The Europeans who colonised Sri Lanka from the 16th to the 20th century expanded the trade of Sri Lankan gems and jewellery to the West, thereby boosting the country’s standing in the global sphere. Sri Lankan gems have even made their way into royal collections across the world. These include Princess Diana’s famous engagement ring, which is now worn by the Duchess of Cambridge, and Dutch Queen Emma’s sapphire and diamond parure tiara. Today, Sri Lanka is one of the top-ranking destinations when it comes to exquisite quality gems, especially the renowned Ceylon Sapphires, and intricate jewellery. 

Q: What is the current status of gem and jewellery industry?

A: Due to the tragic happenings of the 21 April, the industry has suffered a great blow, especially the segment of the industry which caters to tourism. We have appealed to the Government to support these merchants in their time of need. 

Following the recent dip in the Chinese market, we have put forth a proposal to the Government and the EDB to extend our trade relations to countries such as Austria, Korea, Taiwan, Azerbaijan, Dubai and Kazakhstan.  We look forward to the Government’s co-operation in uplifting the industry.

Q: Over the course of its history, have there been instances where an obstacle was turned into an opportunity? If so can you give an example of one such instance?

A: The expansion of African gem mining posed a competitive threat to our local industry, especially since Africa boasts a vast land area and the gemstones found there are similar to those of Sri Lanka. However, Africa also produces immense quantities of rough, which is a weak point in our industry. Thus we formed a trade partnership with Africa, which sees Sri Lanka receive imports of rough on a regular basis. Our dealers have been successful in travelling to African countries such as Madagascar, Tanzania, Mozambique and Nigeria to purchase the rough and conduct the value addition services in Sri Lanka. 

Q: What challenges does the current situation in the country hold for the gem and jewellery industry?

A: In the case of local trade, the Easter Sunday bombings and the political uncertainty have had an extremely negative effect on consumerism. Due to the tragic events of the 21 April there has been a significant lack of interest when it comes to purchasing non-essential and luxury items. 

The industry is not faring that well in the international sphere either. Foreign business traveller arrivals to the country have drastically reduced. As mentioned before, the gem and jewellery merchants who have thus far catered to the tourism sector have found themselves in dire straits and are looking to the Government for support. At this juncture the Government has introduced income tax to the industry, which enables our merchants to take the value-added rough that is mined in Africa to Hong Kong and Thailand. 

Q: How can the gem and jewellery industry overcome these current obstacles?

A: Sri Lanka is currently the primary supplier of sapphires to the world. This is a crucial role. Besides the locally mined products, a large amount of African goods is re-exported via Sri Lanka following value adding services such as cutting and polishing. I am certain that thanks to our position in the global sphere, the Sri Lankan gem and jewellery industry will be able to gain the stability required to rebuild the sector.

We the SLGJA are working closely with the National Gem and Jewellery Authority to use every means necessary to revive the industry. We look to the Government to adopt supportive policies in this regard, especially in the case of exporters that bring in valuable foreign exchange. 

Q: What role does the FACETS International Gem & Jewellery Exhibition play in revitalising the industry and the country?

A: As a popular international event, FACETS 2019 will serve as the perfect platform to uplift the local gem and jewellery industry from its current predicament. FACETS has been known to attract attention from all corners of the world, bringing in multitudes of visitors, exhibitors and buyers from a number of foreign countries. The organisers of FACETS have planned and are in the process of executing a rigorous international promotional campaign to attract foreign participants to the exhibition. Thus, FACETS will be the ideal ambassador to promote the message of positivity among the international community and to show the world that the Sri Lankan gem and jewellery industry and Sri Lanka as a nation is rising beyond tragedy and moving towards a brighter tomorrow.