Varvara Dmitrieva: The jewelry industry of Yakutia is distinguished by its creativity, unique cultural code and conservation of traditions

Varvara Dmitrieva, Associate Professor and Head of the Department of Precious Stones and Metals Processing Technologies of the North-Eastern Federal University, told Rough&Polished about the results of the Forum of jewelry Craftsmanship and the prospects...

Yesterday

Valery Budny: There is no strategy and legislation in Russia enabling the full cycle processing of precious raw materials within the country

Valery Budny, Head of the Jewelry Russia program and CEO of the JUNWEX media holding, told Rough&Polished about the results of the meeting and pressing issues in the precious metals and precious stones (PMPS) and the jewelry sectors.

11 april 2024

Paul Zimnisky: Natural diamonds face the risk of eroding their appeal if constantly discounted

New York-based independent diamond and jewellery analyst and consultant Paul Zimnisky told Rough & Polished’s Mathew Nyaungwa in an exclusive interview that the industry should do away with discounts. He said the industry should treat natural diamonds...

01 april 2024

Edahn Golan: Lab-grown diamond prices to continue declining

In an exclusive interview with Rough&Polished's Mathew Nyaungwa, Edahn Golan, proprietor of the eponymous Edahn Golan Diamond Research and Data, predicted that the prices of lab-grown diamonds would continue to decline, especially at the retail and...

25 march 2024

ADPA’s Ellah Muchemwa: G7 restrictions to bring extra costs from diamond mining to retail

The African Diamond Producers Association (ADPA), which has openly registered its disdain for the G7’s rough diamond trade restrictions, is of the opinion that the move will bring extra costs on all stages, from mining to retail. ADPA executive...

18 march 2024

SLGJA: VAT to wipe out Sri Lanka's gem and jewellery industry

26 december 2023

Sri Lanka Gem and Jewellery Association (SJGJA) members have issued dire warnings of serious damage with imposition of 18% Value Added Tax (VAT) on import of precious rough stones and local sales of gems and gem studded jewellery to tourists from 1 January 2024.

Terming the move as “unprecedented”, SLGJA said that the industry has always been GST/VAT exempted given the national importance in terms of earning much needed foreign exchange and employment. Formal gem and jewellery exports amounts to around $ 500 million whilst domestic sale to tourists and expatriates is estimated at $ 1 billion. The livelihood of over 600,000 persons and their families is dependent on the industry as well.

Despite overall negative performance, Sri Lanka’s export of gems, diamonds and jewellery in the first 10 months of 2023 grew by 16% to $ 440 million. Import of diamonds, precious stones and metals grew by 27% to $ 223 million. Total exports from Sri Lanka are down by 10%.

In that context as well as at a time when consumer preference is shifting to colour precious gemstones from diamonds, the timing of bringing the gem and jewellery sector under VAT is ill-advised. According to SLGJA members, with 18% VAT the entire industry will become uncompetitive. They cited low VAT in competing sources such as India (3%), Thailand (7%) and Dubai (3-5%).

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished