Sri Lanka must target end consumers to boost gem export earnings
Sri Lanka could significantly increase its earnings from gem exports by shifting its focus from intermediate markets to end consumers, Director of the Sri Lanka Miners and Dealers Association Dr. Sanjeewa Fonseka said.
Dr. Fonseka, who is also Chairman of Ceylon Sapphire Mining Ltd and Ceylon FACET and a member of the Ceylon Gem and Jewellery Traders Association (CEJTA), said Sri Lankan gems are generally sold to intermediate gem markets rather than directly to the final buyers, limiting the income that local gem businesses can generate from the country’s valuable natural resources.
“If we can give end consumers the opportunity to purchase and export Sri Lankan gems, the country can earn a higher income from gem exports,” Fonseka said.
He stressed that Sri Lankan gem entrepreneurs should make greater use of international gem exhibitions as a means of reaching direct buyers and expanding their presence in global markets. According to Fonseka, Sri Lanka should also take steps to organise international-level gem exhibitions and gem markets locally. Such events would create a platform for local gem businesses to establish direct links with international end buyers instead of depending heavily on intermediate traders. He further called for wider opportunities for both large-scale gem businesses and small and medium-scale gem entrepreneurs to participate in international gem exhibitions and sales events.
Greater participation by SMEs would enable smaller businesses to gain exposure to global markets while securing better prices for their gems, he said. Fonseka also highlighted the importance of adopting modern technology throughout the gem industry to improve competitiveness and increase value addition. He said the industry should move beyond simply cutting and polishing gemstones and focus more strongly on developing products with greater market value. In particular, greater attention should be given to jewellery manufacturing and other forms of value addition, he said.
“A gem can generally generate more income when it is mounted in jewellery than when it is sold merely after being cut and polished,” Fonseka said. He emphasised that increasing value addition, expanding direct access to international buyers and strengthening participation in global exhibitions would be crucial for Sri Lanka to obtain greater returns from its gem resources. Such measures could also help create new opportunities for smaller gem entrepreneurs and strengthen Sri Lanka’s position in the highly competitive international gem market.
Source : Daily News
