Sri Lanka gem industry promotion received a significant boost as the Cabinet approved a series of regulatory measures aimed at facilitating gemstone imports and taxation. The Sri Lanka gem industry promotion is expected to streamline operations, simplify VAT procedures, and enhance the country’s competitive position in the global gem market. These measures mark a strategic effort to reinforce Sri Lanka’s reputation as a leading hub for genuine and semi-genuine gemstones.
Sri Lanka gem industry promotion gains momentum with new regulatory measures
The Sri Lanka gem industry promotion took a major step forward when the Cabinet of Ministers approved measures designed to strengthen the sector and improve operational efficiency. Recent extraordinary gazette notifications provide the legal framework for implementing regulations that facilitate the import, taxation, and classification of gemstones.
Among the key measures supporting Sri Lanka gem industry promotion is an order under Section 6 of the Value Added Tax Act No. 14 of 2002, published in Extraordinary Gazette No. 2461/43 on 7 November 2025, which enables VAT to be calculated based on the weight of imported gemstones. This adjustment ensures a fair and consistent taxation process, benefiting traders and boosting investor confidence.
Additionally, Revenue Security Order No. 04/2025, issued under the Revenue Security Act No. 19 of 1962 and published in Extraordinary Gazette No. 2461/40 on 7 November 2025, introduces national sub-division customs codes for genuine and semi-genuine gemstones. This order further supports the Sri Lanka gem industry promotion by allowing VAT to be applied accurately according to the weight of the gemstones.
An order under Section 3 of the Ports and Airport Development Tax Act No. 18 of 2011, published in Extraordinary Gazette No. 2461/44 on 7 November 2025, ensures that the new customs codes continue to apply for exemptions related to ports and airport development taxes. These combined measures are expected to simplify administrative procedures and enhance the ease of doing business in the gem sector, reinforcing Sri Lanka’s position as a key global gemstone supplier.
Cabinet Spokesman and Minister Dr. Nalinda Jayatissa emphasized that the Sri Lanka gem industry promotion will strengthen export potential, attract investment, and create a transparent regulatory framework. The proposal was presented by President Anura Kumara Dissanayake, in his capacity as Finance, Plan Implementation, and Economic Development Minister, reflecting the government’s commitment to supporting the gem sector as a priority industry for economic growth.
The Sri Lanka gem industry promotion is poised to benefit traders, exporters, and investors while ensuring compliance with international standards. By facilitating imports, standardizing taxation, and streamlining customs procedures, the government aims to make Sri Lanka an even more attractive destination for gemstone trade and investment.