Rough cut on gem exports in new gazette, say academics
The gem industry is divided on the recently introduced gazette allowing for the export of rough gems that some academics believe results in the reduction in the quality of Sri Lankan products.
Colombo and Moratuwa Senior Visiting Lecturer Gemmologist Dr. S.D. Buthpitiya told The Sunday Times Business that for the first time the authorities have agreed to export rough stones from Sri Lanka and this clearly shows the immaturity of the government.
He pointed out that while some stones are clean and have no issues in selling them about 90 per cent of stones in mines have impurities and these are difficult to sell within the country.
According to the gazette issued under the Ministry of Industry and Entrepreneurship Development, “Rough Gemstones” means natural, uncut, and unprocessed gemstones deems in the opinion of the Authority, stones that cannot be subjected to further value addition within Sri Lanka due to the nature, quality, or market limitations of such stones.
Moreover, these rough gemstones intended for export under these regulations shall first be offered at auction in Sri Lanka. Only those gemstones that remain unsold after the auction shall be eligible for export under this classification.
Previously the restrictions in place ensured that the gemstones with cracks were also bought. Now from this scheme the government will generate an income of US$240 million. But Dr. Buthpitiya explained that all gemstones in Sri Lanka are typically valued at $360 million and this is increased upto $600 million.
However, the concern is that the value addition given to gem stones will generate a higher income, he said.
He pointed out that many businesses were interested in selling abroad the rough stones as some of them have operations overseas. This gazette would allow them to export rough stones from Sri Lanka and then carry out their sales in other countries.
Some others in the industry point out that through this new gazette they are able to ensure that even miners can have a space for their stones in the international market.
Singha Auctions Managing Director Dr. Hemendra Premawardene said miners are unable to sell their rough stones at a fair price. This gazette gives them the opportunity to obtain the best price without being fleeced.
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