Gem and jewellery exports recover in 2010 but past glitter elusive

Thursday, 21 April 2011 00:08 - - {{hitsCtrl.values.hits}}

The country’s combined exports of diamonds, jewellery and gems in 2010 had recovered to cross the US$ 400 million mark but still lag behind record achieved in 2008.

Combined exports grew by 1.5% or $ 6.3 million to $ 405 million in 2010 from $ 398.7 million in 2009. However in 2008, combined exports of diamond and jewellery and gems were a record at $ 537.1 million.

In 2010 value of exports of diamond and jewellery sub sector rose by 1.5% to $ 334.7 million from 2009’s figure of $ 330 million. However 2010 performance though up over 2009, still trails behind the peak achieved in 2008 worth $ 436 million and $ 367.2 million in 2007. This comparison shows exports from this sub sector has greater scope for growth.

Shipment of exports in 2010 grew by 1.9% to $ 70.3 million from $ 69 million in 2009. Herein too 2010 performance was below $ 105.5 million worth of exports in 2007 and $ 101 million in 2008. Sri Lanka’s overall earnings from exports in 2010 rose by 17.3% a record $ 8.3 billion compared to that of 2009. External trade, which was affected by the global economic crisis in 2009, rebounded strongly during 2010 with the better investment climate, attractive prices, gradual recovery in external demand and the removal of the marine war risk premium on re-insurance. The previous highest exports figure of $ 8.13 billion was achieved in 2008.

Export of diamond and jewellery amounted to 4% of total exports, down from 4.7% in 2009 and 5.4% in 2008.

In 2010 the National Gem and Jewellery Authority (NGJA) embarked on a three pronged strategy, comprising of supply and demand development and capacity building, to achieve the export target of US dollars 1 billion by year 2016 for gem and jewellery. This is supported by the Budget 2011 proposal to increase the foreign exchange allowances for imports of raw gem stones from US dollars 10,000 to US dollars 50,000 per person with effect from November 2010.

The Government in March 2010 also removed customs duties on the import of gold. The move was to facilitate more imports through formal channels and boost jewellery manufacturing and exports.