To encourage gem and jewellery exporters:

NGJA welcomes concessions to gem and jewellery industry

Chairman, National Gem and Jewellery Authority (NGJA) Hasitha Tillekeratne hailed the proposals introduced by the 2008 Budget to strengthen the local gem and jewellery industry.

The NGJA made representations to the Finance Ministry of the leading trade associations and feels confident that the proposed reforms will convert the gem and jewellery export sector to a US$ 1 Billion industry.

To further develop the lapidary sector, export income arising from gems imported and thereafter cut and

 polished and re-exported will be exempt from income tax, which would help Sri Lanka to build a lapidary industry comparable in scale to the diamond manufacturing industry.

To further 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.

This would expand and develop the gem trade with Madagascar and other producing countries by facilitating exporters to pay in foreign currency out of their export earnings, for their purchases, Tillekeratne said.

‘The proposal to introduce a credit guarantee scheme by the Central Bank; to encourage banking institutions to extend credit facilities to those industrialists engaged in the industry would provide much needed collateral support for loans granted to the gem and jewellery sector.

The proposal to charge a 2.5% income tax, in place of prevailing income tax; on the value realised from the Gem Auctions conducted under the supervision of the National Gem and Jewellery Authority; would create a transparent gem trading process with regularised export opportunities in an open market, the Chairman said.