Govt mulls Rs 500 m gem testing lab

The government is now in the process of setting up a modern international standard gem and jewellery testing laboratory at a cost of Rs 500 million, Minister of Environment and Renewable Energy Susil Premajayanth said.

“Sri Lanka needs a modern international gem and jewellery laboratory, when there is a good market for this sector. When there is a big demand for unheated gem stones, having a good laboratory is the need of the hour for the sector,” Minister Premajayanth told the Daily News Business.

Minister Premajayanth made these remarks participating at the seventh “Singaporean International Jewellery Expo 2013” in Singapore.

The event was organized by the Singapore Gem and Jewellery Association and the Minister Premajayantha participated as a special guest at this prestigious event in Singapore. More than 12 top gem and jewellery exporters participated in the Sri Lankan pavilion . More than 200 top gem and jewellery exporters in the world were at the event.

He said many rich Asians are now buying unheated gemstones which was now the growing trend. Therefore, the proposed laboratory would help the sector in a big way when huge markets like China open for us tax free, the Minister said. The laboratory will function under the Sri Lanka Gem and Jewellery Authority, and will be mainly for testing purposes.

The Minister speaking at the event opening ceremony said the government has conceptualized a policy to enhance the gem and jewellery sector as a thrust industry, which has enormous potential for growth as well as to promote Sri Lanka as a hub in the region.

“Because Sri Lanka’s gem and jewellery has a high demand in most countries, the current government investment promotional strategies and booming economy avails international entrepreneurs to enhance post war development advantages offered by the government for investments in Sri Lanka.

Therefore, we intend to have a strong bilateral cooperation and relationship with Singapore,” he said.

“Sri Lanka enjoys the country-partner status for this prestigious event and we have been participating for this event from its inception, which was indeed an excellent opportunity for local gem and jewellery traders and exporters to develop trade links with potential buyers, Minister Premajayanth said.

He said the Chinese government has offered a tax free regime for Sri Lankan gem and jewellery exports in the aftermath of President Mahinda Rajapaksa’s recent visit.

This will enormously benefit the local sector because China is the second largest gem and jewellery buyer in the world due to its rapid economic development. Dr Lily Neo Member of Parliament Pagan Group Representation Constituency (GRC) said that with the booming of Chinese, Indian and other economies in the Asia Pacific region, demand for gem and jewellery will grow rapidly.

She said the demand from China and India value 60 percent of the world gem and jewellery trade value. Therefore, exporting countries will benefit in a greater way. Exporters like Sri Lanka and other countries should enhance quality of gems and jewellery in their exports, she added.

Chairman Sri Lanka Gem and Jewellery Authority Amitha Gamage said that participating for this type of event would help to develop trade linkages for Sri Lankan exporters.