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| Thursday, 23 October 2003 |
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Call to raise ceiling on cash purchases on gems to $ 10,000 From Shirajiv Sirimane in Ratnapura One of the leading exporters of value added gems Managing Director, Beehive Industry and Central Lapidary Ratnapura, Rohan Perera said that most Sri Lankans buy gems from Madagascar but they are faced with many problems. "The government allows only US $ 500 dollars in hard currency and the rest has to be taken in Travellers cheques (TCs). He said that this ceiling should be increased to at least 10,000 dollars since it is very difficult to convert TCs into US dollars. He said that the Cargo Village which accepts Gem parcels at the airport has been relocated in Colombo and this is creating additional problems for them. The excuse put forward by the authority is that there was a fraud at the airport but this is not an excuse." He said that local Banks are still charging big margins for lending and added that due to this factor he obtained a loan from USA which offered him 3% interest." "Sri Lanka has the highest running costs for industries in the region and the government should take steps to provide incentives. Sri Lankan electricity bills are the highest in Asia," he said. He said that his company has over 200 vacancies but there are no qualified gem cutters. The National Gem and Jewellery Authority invested Rs. 18 million to construct a new headquarters and trading complex in Ratnapura last Tuesday to be a meeting point for international buyers and gem traders and to provide facilities for gem miners and others involved in the industry. The new complex was opened by Minister of Enterprise Development, Industrial Policy, Investment Promotion and Constitutional Affairs Prof. G. L. Peiris, Minster of Defence Transport, Highways and Civil Aviation Tilak Marapana and Minister of Small Holder Development, Susantha Punchinilame. A gem Museum with aid from Norway and Holland and a meeting point for small traders will also be constructed in the future. Minister Marapane said that the government is keen on long term plans and they do not believe in solutions that open like a bottle of soda. "This project too is one such long term plan of the government." Minister Peiris said that the government has identified this industry among developing industries in the country along with tourism and leather. He said that he is also keen to expedite the proposed FTA with Madagascar mainly to import gems. He said that they are also hoping to tie up with USA to add technology for the industry. Chairman, Falcon International, a leading gem exporter to Japan M. J. M. Zurfick who hailed the opening of the complex said that infrastructure by way of star class hotels in Ratnapura has be increased to attract more tourists. "This is a good meeting point for buyers." He said that by opening a new complex in the World Trade Centre (WTC) the Gem and Jewellery Authority has provided an opening for gem traders in Colombo. "This is the first time that Ratnapura merchants were exposed in this manner." Meanwhile, Sri Lanka's only international standard Furnace manufacturer for transforming geuda into precious stone Lanka Refractries Ltd, is protesting that the government is imposing a 10% tax on their machines. An official of the company said that their company has fabricated a special furnace for transforming Geuda into high value gems. "This design is a boon to the industry as it is of international standard and the price is within the reach of Sri Lankans." However he said that the government has imposed a 20 VAT on these products and it has raised the price of a machine. "I can't understand the logic behind the government trying to earn tax from hi tech products manufactured by Sri Lankans." |
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