Despite US recession:

Gem and Jewellery growth seven per cent

Anjana SAMARASINGHE

Despite the unfavourable economic condition in the US market, Sri Lanka was able to record seven per cent growth through gem and jewellery exports during first half of this year.

Speaking to Daily News Business, last night, Chairman of the National Gem and Jewellery Authority (NGJA) Hasitha Tilakarathne said that during the first half of the year country was able to earn USD 244 million through gem and jewellery exports.

This was USD 227 million in the first half of last year reflecting a seven per cent growth.

Senior Manager (Export and Export Promotion) NGJA Ajith Perera said there was a significant growth in Diamond re-exports which recorded 13 per cent growth during this period.

US is one of the major buyers of local gem and jewellery and US market account nearly 38 per cent of the total exports. The unfavorable economic conditions in US market had made an impact on the gem and jewellery exports to USA. However country managed to maintain seven percent growth, he said.

Russia, India, Turkey and UAE are some of the lucrative markets for Sri Lanka. There is a huge demand for colored stones in India. We expect to enter into Russian and Indian market in next year.

“Europe is a strong market and local gem and jewellery industry has huge growth potential in this region,” he said.

From next year onwards Sri Lanka will organise ten international pavilions at most reputed international gem and jewellery shows in the world. Country will participate for the BASEL show, which is a most, reputed gem and jewellery show in Swaziland in 2010.

This will be an ideal exposure for local industry in Europe region.

“We expect to introduce credit guarantee scheme for gem and jewellery industrialists. Most of the banks are reluctant to take gem as collateral when applying for loans. Under this scheme we expect to facilitate industrialists for raising funds to develop their business,” he said.