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New markets explored:
NGJA targets Rs 35 b on gem and jewellery exports
Harshini PERERA
The National Gem and Jewellery Authority (NGJA) is targeting Rs.35
billion this year through Gem and Jewellery exports.
With the dawn of peace, the gem and jewellery industry will a have
positive impact. The industry in the Northern province, especially,
would expand with the infusion of technology and human resources.
Therefore, these areas would become a manufacturing hub to cater to the
tourism industry said Deputy Director General (Acting), NGJA, Ajith
Perera.
There was a 34 percent decline in gem, jewellery and diamond exports
in the first five months of this year compared to the corresponding
period last year. The gem and jewellery industry is the first to
collapse in an economic recession, he said.
Perera said that following the decline in the market in the United
States, Thailand, Italy, Hong Kong, Switzerland, Japan, France,
Malaysia, United Kingdom, Germany, Canada, India, Singapore and the
Maldives the NGJA identified Brazil, Russia, India and China as the
least affected countries of recession that would broaden the market for
gem and jewellery.
Hence, the authority had ventured into the Chinese market while it
will participate in a leading international event in Russia and India in
2010 and negotiate to send a fact-finding mission to Brazil this year.
The Sri Lanka Gem and Jewellery Association has called upon jewellers,
exporters and miners to manage cost, conserve resources and maintain a
low profile until the economy improves as a strategy to face the
economic recession.
Simultaneously, we also looked into the need of people actively
participating in promotional activities of the trade by subsidizing a
certain percentage of their cost for travelling and participating in
recognized international trade exhibitions, the Secretary of the Sri
Lanka Gem and Jewellery Association, Ziqufi Ismail said.
Therefore, members of the trade were asked to be creative to reach a
niche market. The economic recession has resulted in a decline of 40-45
percent in exports to countries such as the United States, Germany and
Japan, the main market for Sri Lanka’s gem and jewellery exports, he
said.
He said that the Sri Lanka Gem and Jewellery Association is looking
for major markets apart from the traditional markets. It is venturing in
to markets which have a potential for gems and jewellery in countries
such as China, Russia and India in the near future.
“We have allocated a fair percentage of our promotional budget and
already sent two delegations to China and Russia. The Gem and Jewellery
Association is hoping to do e-marketing in gem and jewellery through
these channels,” he said.
This will be a boost for the trade in the months to come, since the
North East market is opening slowly. The East especially will record a
growth in tourism which is directly connected to the gem and jewellery
industry. With the tourism industry growth in volume, it will give rise
to new investments in the gem and jewellery industry. There will be a
demand for gold in the newly liberated areas as people in those areas
are now free to invest money.
The FACETS Sri Lanka 2009 and LUSTRE 2009 will facilitate members of
the Sri Lanka Gem and Jewellery Association to attract new investors.
Steps will be taken to reduce the 12 percent tax on the jewellery trade,
Ismail said. |
