About 90% of the gem mining is carried
out in alluvial deposits using traditional methods, in open cast shallow
pits or deeper shaft type pits and tunnels or by manually dredging the river
beds. A gradual rise in the use of light mechanized mining methods can also
be seen in recent times.
Gem mining activities are concentrated mainly in the
Districts of Ratnapura, Matale, Badulla and Moneragala
The primary manufacturing activities are
gem cutting (lapidary) and jewellery manufacture. The lapidary sub-sector
consists of the diamond manufacturing industry and cutting and polishing of
coloured gemstones. The sub-sector for jewellery manufacture consists mostly
of traditional artisanal production units but modern mass manufacture is
also on the rise. It is estimated that there are around 3,000 manufacturing
units around the country.
There are four main trading oriented activities which are
gem dealing (wholesale), importing, exporting and retailing
The total
value of the gem & jewellery trade at export and retail points is estimated
at about Rs. 55 billion (USD 550 million) annually. The market for gems and
jewellery in Sri Lanka can be divided into 3 major market segments as shown
in the table below.
|
Market Segment |
Value
(Rs. Billions) |
Share
(%) |
|
Domestic |
17.5 |
31% |
|
Tourist |
2.7 |
5% |
|
Export |
35.5 |
64% |
|
Total |
55.7 |
100% |
The largest market segment in value
terms is the export market which is made of four main product categories,
namely Geuda (refers to an unprocessed variety of corundum), Polished
Diamonds, Cut & Polished Gemstones and Jewellery.
Though diamond exports account for most the export value, the value
addition in this sub-sector remains low. The gem sub-sector accounts for
most of the value addition
Exports
have continued to grow steadily over the past few years as can be seen in
the chart.
The
Domestic jewellery market is the second biggest market segment and refers to
the sale of jewellery to domestic consumers. The main demand from this
market segment is for traditional jewellery made with 22 karat gold.
The third
segment is the tourist market which refers to the sale of gems & jewellery
to the 500,000 + tourists that visit Sri Lanka each year. Though available
statistics put the value of this market segment at around Rs. 2.7 billion,
industry experts estimate that the correct value is at least double this.
This segment is very significant in terms of high levels of value addition.
In the
context of the Sri Lankan economy, the gem and jewellery industry has and
will continue to be
one of the most important industries in the country both as a vitally
important source of foreign exchange earning and employment generation.
In a global
context, this Island of Gems (an ancient name for Sri Lanka was Ratnadvipa
which means Island of Gems) continues to be one of the most important, if
not the most important source of fine sapphires in the world. Arguably no
other source has produced sapphires in size, quantity and quality for as
long a time as Sri Lanka has.
Among the
connoisseurs of gemstones, Ceylon Sapphire continues to enjoy a good
reputation and occupies a unique space as a special gemstone. It is truly
the ‘King of Gems’ and the ‘Gem of Kings’ from this Ratnadvipa.
The above article is
reproduced with kind permission from the National Gem and Jewellery
Authority.
|
