Gem and jewellery industry urges market liberalisation

From left: FACETS Local Promotions Head Rizan Nazeer, Cinnamon Life CEO and General Manager Sanjiv Hulugalle, FACETS 2026 Chairman Armil Sammoon, SLGJA President Akram Cassim, and SLGJA Vice President and COO Shezan Mansoor at the launch of the FACETS Sri Lanka 2026 International Gem and Jewellery Show press briefing – Pic by Ruwan Walpola

• SLGJA President Akram Cassim says high taxes forced goldsmiths and businesses abroad; liberalised regime could lure them back and attract global brands
• Notes Sri Lanka’s mine-to-market advantage allows full control of supply chain; US 20% gemstone tariff could be opportunity as buyers pre-emptively secure rare stones
• FACETS 2026 Chairman Armil Sammoon states tariffs may dampen short-term demand, but spur rare stone buying
• FACETS Head of Local Promotions Rizan Nazeer asserts liberalisation could tap into billion-dollar Indian wedding market; proximity could divert traffic from Dubai to Sri Lanka and boost tourism

By Charumini de Silva

Sri Lanka’s gem and jewellery industry is calling on the Government to liberalise the sector, arguing that, with the right reforms, the country could leapfrog into the ranks of global trading hubs such as Hong Kong, Dubai, and Bangkok.

“Sri Lanka’s position as a source country is underutilised due to restrictions on importing rough stones, gold, and other raw materials,” Sri Lanka Gem and Jewellery Association (SLGJA) President Akram Cassim told the Daily FT.

High taxes have pushed many goldsmiths and businesses to relocate to countries like Madagascar, he noted, adding that a liberalised regime could lure them back and attract global brands to invest locally.

“If rough stones could be imported, cut, polished, and either exported or sold domestically, Sri Lanka is in a sweet spot to springboard to hub status in the region,” Cassim said, stressing the need for strong State backing to elevate the industry.

Cassim also opined Sri Lanka, both a source country and a manufacturer, can control the entire supply chain from mine to master-cut stone, giving it a competitive edge in adapting to shifting global trade policies. 

He said the new 20% US import tariff on gemstones could become an unlikely opportunity, spurring pre-emptive buying and reinforcing the country’s position as a premium global supplier. 

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“Demand doesn’t always fall when tariffs are introduced; sometimes, it rises. Tariffs will come and go, but with the right reforms, Sri Lanka can become the region’s jewellery hub,” Cassim added. 

When asked about the global trade impact on the industry, he said although tariffs can hurt demand, they see potential upside, noting that buyers often secure rare stones ahead of price hikes.

FACETS 2026 Chairman Armil Sammoon said while tariffs can dampen short-term demand, they often prompt buyers to secure rare stones before costs escalate. “People know gemstones are rare and they want to buy before prices climb,” he said, adding that Sri Lanka’s integrated mine-to-market advantage and craftsmanship could help it retain a competitive edge, pointing out that competitors such as Brazil face duties of up to 50%.

FACETS Head of Local Promotions Rizan Nazeer said liberalisation could also position Sri Lanka to capture a slice of the billion-dollar Indian wedding market, where buyers typically purchase 1-2 kilos of gold per event. 

“The traffic now going to Dubai could be diverted to Sri Lanka with a one-hour flight. That would not only boost gem and jewellery sales, but also tourism, hotels, restaurants, and retail,” he said.