India to be Lanka's main market for gem and jewellery sector

India could indeed in the future emerge as the main market for Sri Lanka's gem and jewellery products. India's growing Middle Class with an increasing spending power augured well for Sri Lanka's gems and jewellery sector which now had an important market at its doorstep.

Minister of Enterprise Development and Investment Promotion, Dr Sarath Amunugama, who chaired a meeting yesterday at his ministry proposed to invite the top 10 leading Indian businessmen in the Gem and Jewellery trade, to visit Sri Lanka and impart some of their knowledge to local industry professionals, perhaps through a training programme.

During the discussion Dr. Amunugama pledged to support the entrepreneurs in the jewellery sector, notably in the case of the importation of specialized machinery from India, used in the manufacture of bangles, through National Enterprise Development Authority.

One area suggested by the Minister was to build stronger ties with the Indian gems and jewellery sector such as the setting up of joint ventures. He said "Why do we always talk about European countries like Germany, when India is doing a very good business today."

"We can build ties with our northern neighbours. This was particularly relevant and impact favourably on a trade such as gems and jewellery where the demand for the products was quite elastic."

"We need to be aware of how the gem and jewellery sector is undergoing improvements rather than focus on developing huge institutes."

"We can use existing resources such as the land the BOI has on Galle Road, which is ideal for constructing a new building that can house a Gem Museum, gem and jewellery laboratory, show rooms, Gem Exchange Centre and a training centre to promote the Gem and Jewellery sector" Dr. Amunugama further added.

At the meeting the representatives of the association of Gem and Jewellery Industry (AGJI) spoke of some of the challenges faced by the Sri Lanka gems and jewellery sector.

These included problems connected to purchasing equipment relating to the Industry, to the payment of taxes in purchasing main raw materials such as pure gold, platinum alloy and gems, the need for more recognition for Sri Lankan gem traders in Madagascar, the depreciation of Sri Lankan Rupee and some taxes that need to be paid by member of the industry.

Dr Amunugama, expressing support for the industry representatives, said that the Government may be able to assist the industry by granting some benefits, however matters of a commercial nature would have to be addressed by the enterprises concerned.