Govt. targets $1 b gem industry as Sri Lanka pushes global hub ambitions by introducing wide-ranging reforms aimed at increasing exports, improving value addition, strengthening regulatory oversight and positioning the country as a leading international centre for gemstones and jewellery.
Govt. targets $1 b gem industry as Sri Lanka pushes global hub ambitions
The Government unveiled its vision while announcing the Gem City Ratnapura Exhibition 2026, outlining plans to transform Sri Lanka’s centuries-old gem and jewellery industry into a billion-dollar export sector. Authorities are targeting a sharp increase from the current annual export value of around $300 million, with the sector expected to play a key role in the country’s broader export development strategy.
Addressing the media, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe said the gem and jewellery industry remains one of Sri Lanka’s most strategic export sectors and that comprehensive reforms are being implemented across the entire value chain to improve global competitiveness.
He acknowledged that Sri Lanka’s greatest challenge is not the quality of its gemstones, which enjoy a strong international reputation, but the country’s limited success in marketing itself as a global gem destination.
According to Abeysinghe, the Government is working with the Ministry of Finance, the Export Development Board (EDB), the Ministry of Tourism and the National Gem and Jewellery Authority (NGJA) to develop a coordinated strategy that will establish Sri Lanka as a regional gem and jewellery hub.
A central proposal under this strategy is the creation of a dedicated Gem and Jewellery Experience Centre, which would bring together gemstone trading, exhibitions and tourism under one permanent facility. The Government believes such an initiative would significantly enhance the visitor experience while promoting higher-value sales and international buyer engagement.
The Govt. targets $1 b gem industry as Sri Lanka pushes global hub ambitions initiative also includes stronger measures to address gemstone smuggling and informal trading, which authorities say continue to limit export earnings despite high levels of gemstone production.
Abeysinghe noted that while official Sri Lanka gem exports average around $300 million annually, mining licence data suggests considerably larger quantities of gemstones are being extracted than reflected in export statistics. To bridge this gap, the Government plans to strengthen monitoring systems within the National Gem and Jewellery Authority while enhancing cooperation with Sri Lanka Customs and law enforcement agencies.
Investments in modern surveillance technology and improved institutional coordination are also expected to help reduce illegal trade and channel more export revenue into the formal economy.
NGJA Chairman Prof. S.P. Chaminda said Sri Lanka possesses unique competitive advantages, including environmentally sustainable mining practices and a globally recognised gemstone heritage. He revealed that Sri Lankan diplomatic missions overseas are actively supporting efforts to expand international market access and improve the visibility of locally sourced gemstones among global buyers.
However, he cautioned that administrative inefficiencies, taxation issues and the need for greater industry formalisation remain key challenges that must be addressed if the sector is to achieve its estimated $1 billion export potential.
Meanwhile, EDB Chairman Mangala Wijesinghe defended the ambitious export targets outlined in the recently launched National Export Development Plan (NEDP), saying they are supported by detailed sector-specific strategies developed in consultation with industry stakeholders.
He projected that Sri Lanka gem exports could reach $1.2 billion within the next five years, rising from $388 million recorded in 2025, while noting that the industry had already achieved 8.7% year-on-year export growth during the first four months of 2026.
Wijesinghe also highlighted broader export diversification efforts spanning automotive components, advanced rubber products, food and beverages, ICT, logistics, ship repair and spices. He said parallel reforms in trade facilitation, logistics, innovation, finance and workforce development would help industries achieve their respective export targets.
Supporting these ambitions, the Gem City Ratnapura Exhibition 2026 will take place from 31 August to 2 September 2026 under the theme “Home to the Finest.” The exhibition will feature more than 80 exhibitors showcasing gemstones, jewellery, machinery, craftsmanship and industry technologies.
Organisers have strategically aligned the event with the international jewellery exhibition calendar to attract overseas buyers travelling to major trade fairs across East Asia. The exhibition is expected to strengthen Sri Lanka’s position in the global gemstone trade while providing international visitors with direct access to Ratnapura’s renowned gem industry.