The Committee on Public Finance (COPF) of Parliament has held extensive discussions on key issues affecting Sri Lanka’s gem and jewellery industry.

The meeting was held on January 27 at the Parliament complex chaired by Member of Parliament Dr. Harsha de Silva and attended by Deputy Ministers Chathuranga Abeysinghe, Dr. Kaushalya Ariyaratne, and Nishantha Jayaweera, along with Members of Parliament Ravi Karunanayake, Harshana Rajakaruna, Nimal Palihena, and Wijesiri Basnayake.

Representatives from several organizations representing different segments of the gem and jewellery industry and the business sector briefed the committee on the challenges currently confronting the industry.

According to the Department of Communication of Parliament, stakeholders emphasized that the absence of a long-term national policy for the gem and jewellery industry has resulted in significant difficulties, and strongly emphasized the need to formulate a robust national policy for the sector.

Industry representatives further noted that the sector could be strengthened by easing existing regulatory restrictions to promote exports, reviewing and restructuring the role of the National Gem and Jewellery Authority, introducing safe harbour rules for income tax, implementing VAT reforms specific to the gem and jewellery industry, regulating foreign entities operating informally, and encouraging greater foreign investment.

Attention was also drawn to the prohibition on the use of scanning equipment during gem mining operations and the declining availability of land for existing mining activities, both of which were identified as serious constraints on industry growth, the statement said.

In his concluding remarks, the Chairman of the Committee stated that the deliberations helped identify critical problem areas, particularly concerning fiscal and physical liberalization, administrative inefficiencies, and policy-related issues governing mining activities.

Accordingly, he noted that the Committee intends to consolidate the concerns raised into a comprehensive discussion paper and engage in a series of structured discussions with senior officials of the relevant ministries to identify sustainable solutions, it added.