Concerns Rise Over Sri Lankas Gem Exports and Benefits to China
Sri Lankas gem industry faces scrutiny as concerns grow over foreign buyers, particularly China, reaping most benefits from exports.
New Delhi, October 18 (Daily Kiran) : Sri Lanka, known for its rich gemstone resources, is in the midst of a heated debate regarding who truly benefits from its natural wealth. Reports indicate that while local miners and traders face fluctuating incomes, foreign buyers, especially from China, are increasingly dominating the gem trade.
According to a report by Ceylon Wire News, major Chinese markets in Beijing, Shanghai, Shenzhen, Guangzhou, and Hong Kong have become key destinations for high-value sapphires and colored gemstones sourced from Sri Lanka. Chinese buyers are particularly interested in untreated or uncut natural stones, with high-quality blue sapphires and rubies being top choices.
Industry experts express concern not just over the fact that Chinese traders are purchasing gems from Sri Lanka, which is a normal and legitimate part of international trade. The real worry lies in the significant value addition that occurs outside Sri Lanka, potentially allowing other countries to capture a large portion of the final retail value of these gems.
Reports suggest that for Sri Lanka to maximize its benefits from exporting precious natural resources, it must focus more on in-country processes such as cutting, polishing, branding, certifying, and jewelry manufacturing. Each step in the processing and jewelry creation generates opportunities for employment, technical expertise, tax revenue, and foreign currency.
As the trend of buying directly from mining areas and production centers grows, buyers aim to reduce costs. Sri Lanka is globally recognized for its diverse gemstones, including blue sapphires, padparadscha sapphires, yellow sapphires, pink sapphires, white sapphires, rubies, spinels, garnets, tourmalines, zircons, moonstones, alexandrites, and cat’s eye chrysoberyl.
According to the Sri Lanka Export Development Board, the country exports high-quality blue sapphires along with nearly 75 other types of gemstones to international markets. Sri Lanka’s reputation for the quality of its untreated natural gems has made it a prominent source for buyers around the world.
Data published by the Serendib Blue Gem Data Hub, citing sources within the Sri Lankan industry, indicates that the country’s gem and jewelry exports reached approximately $430 million in the fiscal year 2024.
