Jewellery manufacturers call for instant loans

Anjana Samarasinghe

LOANS: Small scale jewellery manufacturers stress that there should be proper mechanism for them to obtain instant-loans as their capital when they receive huge orders.

Proprietor of the Krishan Gem and Jewllery Krishantha Kumara said that there is a huge risk to get a big orders due to the uncertainty of the gold prices in the market. If we receive big orders with an advance payment today that payment is will not be enough to buy the required gold next day due to the high increase of gold price he added. This has prevented us undertaking big orders.

If government institutes such as Export Development Board (EDB) or National Gem and Jewellery Authority (NGJA) could provide instant credits for small scale jewellery manufacturers as their capital they will be able to undertake huge orders and settle the loans after completing the transaction, Kumara said.

Though manufacturers could buy precious metals such as gold and silver for concessionary rates, 100g is the minimum quantity of gold that they will be able to buy. If Central Bank could reduce the minimum amount, it will be a relief for the small-scale manufacturers he said.

In the black market industrialists could buy any minimum amount of gold or silver even it is 2g. Small scale jewellery manufacturers also pointed out necessity of a proper system to protect their rights on their jewellery designs.

W. Devanarayana from Lakmini Gems said that some large scale manufacturers buy their jewellery at the trade fairs as consumers. They copy our designs and manufacture under their names.