Green light for online trading of gems and jewellery; reduced export charges

• Cabinet nod to submit orders to P’ment on revised regulations via gazette notification

The Government has revised the current export charges imposed by the National Gem and Jewellery Authority (NGJA) apart from allowing online trading.

The Cabinet of Ministers this week approved submission of orders issued by the gazette notification 2232/36 to the Parliament to give legal effect to the moves.

As per the gazette notification, for gem and jewellery export consignments conducted online below the FOB value of $ 1,000 will be free-of-charge, whilst export consignments conducted online to the FOB value between $ 1,000 and $ 3,000 (inclusive of both figures) will be charged Rs. 3,000.

The fee for gem and jewellery export consignments conducted online above the FOB value of $ 3,000 has been reduced to 0.25% of the FOB value of the invoice from 0.5%.

The extraordinary gazette was issued by Industries Minister Wimal Weerawansa on 18 June, by virtue of the powers vested by under Section 53 read with Section 15 of the National Gem and Jewellery Authority Act No. 50 of 1993.

The Minister this week presented to the Cabinet the proposal to submit orders issued by the Gazette to Parliament.

“The demand for gems in the international market has dropped significantly due to the COVID-19 pandemic. Therefore, the industry stakeholders have requested the NGJA to provide relief for charges levied on gem exports and facilitate online gem exports,” the Government Information Department said.

As per provisional data, gem, diamond and jewellery exports in the first seven-months of 2021 amounted to $ 183 million as against a very low $ 90 million in 2020. Total exports in 2020 amounted to $ 211 million, down 9% from 2019. In 2019, the first seven months’ exports amounted to $ 175.6 million.

Sri Lanka is 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 and in 2021 officials are confident that export performance this year will be higher than 2020, though it may still lag behind the $ 306 million achieved in 2019.