Industries Ministry Secretary criticises NGJA

Friday, 7 March 2025 06:13 - - {{hitsCtrl.values.hits}}

Opines Authority’s existence has done more harm than good to gem industry; calls it a ‘system of scam’
Says apparel industry became successful due to absence of flawed regulatory framework like NGJA
Alleges gem industry is frequently exploited for money laundering; raises concerns about its governance and transparency
Struggles generating revenue necessary to sustain industry despite 7,000 issuing licences annually

Industries Ministry Secretary Thilaka Jayasundara

Industries Ministry Secretary Thilaka Jayasundara on Wednesday made a scathing critique of the National Gem and Jewellery Authority (NGJA), stating that its existence has done more harm than good to the gem industry.

During the Committee on Public Enterprises (CoPE) inquiry, she asserted that the NGJA operates within a system that enables widespread scams, expressing her belief that the country would have benefited more without it.

“I wish there was no NGJA at all in this country. It is a ‘system of scam’,” she added.

Drawing a comparison with the apparel industry, Jayasundara noted that its success in becoming Sri Lanka’s top export earner was largely due to the absence of a flawed regulatory framework like the NGJA’s.

She opined that the gem industry is riddled with loopholes, making it more of a hindrance than a driver of economic growth.

The Ministry Secretary also alleged that the sector is frequently exploited for money laundering, raising further concerns about its governance and transparency.

According to Jayasundara, corruption within the NGJA is not an isolated issue but rather a longstanding practice.

Another official at the inquiry supported this claim, attributing that the NGJA issues over 7,000 licences annually, yet the sector struggles to generate the revenue necessary for sustainability. He said although the industry requires at least $ 2 billion in annual exports to break even, Sri Lanka barely crosses the $ 500 million mark, with total gem, diamond and jewellery export revenue in 2024 amounting to just $ 282.07 million.

Highlighting the extent of undervaluation, he alleges that NGJA officers routinely underreport gem valuations, reducing Rs. 600-700 million worth gemstones to a mere Rs. 1 million, insisting urgent need for systemic reforms within NGJA to prevent further financial losses and potential misuse of the sector.