Gem exports bounce back after recession

Earnings rise to Rs 14.92 b up to April:

Charumini DE SILVA

Gem exports during the first four months of this year showed a growth of 31 percent compared to the corresponding period of 2009.

It is not enough to compare statistics of 2009 and this year's first four months since the industry had to face a difficult time due to the global financial downturn, National Gem and Jewellery Authority (NGJA) Deputy Director General, Ajith Perera told Daily News Business.

However, compared to the statistics of the first four months of 2008 this year shows a positive trend as the negative growth has reduced remarkably. "We expect by the end of May we will continue to record a positive growth," he said.

Perera said there is a 24 percent increase in gem exports by the end of April this year. Re-exports of diamond accounted a growth of 36 percent. Jewellery exports increased by four percent and the total of these exports showed an increase of 31 percent compared to the corresponding period.

The stimulated total earning of the country as at end of April was Rs 14.92 billion compared to the 11.36 billion in 2009. However, it is a drop when compared to Rs 16.39 billion recorded in 2008. There was a change in the hierarchy of the top ten gem export countries. Thailand has became the first beating the USA into second position. The rest were followed by Switzerland, Hong Kong, Malaysia, India, Singapore, Japan, Germany and a new market Belgium.

The Deputy Director General said the new market in Belgium has much potential. India entering into the Sri Lanka's top ten gem exporting countries is encouraging.

"Although China is also a good market, it has still not made a significant remark to be in the top export countries. NGJA expects China will be in the top ten countries".

"It is important to identify and penetrate particular markets such as Belgium. We are also focusing on the Indian and the Chinese markets foreseeing the possibilities," he said.