Budget proposals to help sector earnings:
Credit guarantee scheme for gem exporters
Ramani Kangaraarachchi
The Sri Lanka gem and jewellery industrialists are to increase the
growth rate up to 20 per cent from the existing 13 per cent through
maximising production capacity.
President, Sri Lanka Gem and Jewellery Association Chanaka Ellawela
commending the comprehensive and progressive proposals contained in the
Budget 2008 in relation to the development of the gem and jewellery
industry said the aim of the industry is to reach US $ one billion in
export earnings within five years.
He hoped it would not be difficult to achieve this target with the
given budget proposals.
He said the objectives of the six proposals are two fold. Firstly to
rapidly increase the supply of raw material
available to the industry both from domestic and foreign sources and to
expand the manufacturing capacity for value addition through cutting and
polishing of gems and jewellery manufacture.
He said the industry will be able to increase the global
competitiveness leading to a rise in foreign exchange earnings and the
generation of employment opportunities.
There are 5,000 employed in the industry at present. This could
further increase with new developments.
To encourage gem and jewellery exporters ,50 per cent of foreign
exchange earnings of such exporters maintained in bank accounts in Sri
Lanka, will be permitted to be used for the import of required raw
material and the Central Bank will introduce a credit guarantee scheme
to encourage banking institutions to extend credit to persons engaged in
the industry.
Ellawella said this would encourage people to start new factories in
lapidary and allied sectors.
Exemption of income tax for the export income arising from gems
imported and thereafter cut and polished, and exemption of Customs Duty
for packing , raw materials and accessories to be used for fashion
jewellery industry are among the other proposals.
The Sri Lanka Gem and Jewellery Association as the apex trade
association in the gem and jewellery industry plays a lead role in the
formulation of industry level strategy and policy advocacy to propel the
industry on a path of rapid growth. |