"We are very pleased and
thankful to all the staff at the National Gem and Jewellery Authority of Sri
Lanka for giving us kind permission to reproduce articles from Gem Talk sept 2007"
"Due to the efforts of
National Gem and Jewelry Authority , Sri Lanka has now become one of the
rapidly growing gem and jewellery trade centers in the world, we really
appreciate all the hard work"
Business Principles
Business Principles govern how a company conducts
itself.They should be based on the firm belief that application of good
principles is fundamental to business success.
Business
principles should consist of core values ,responsibilities to stakeholders
and a set of principles of how a company conducts its affairs.All companies
and entities no matter their size should adhere to these business
principles.These principles apply not only to private sector entities but
are relevant to public sector organizations.
In this
context ,provision of products and services that consistently offer value in
terms of price,quality,honesty,integrity and fairness are applied in all
aspects of Gem and Jewellery trade and the same is expected inrelationships
with business partners.
The Gem and Jewellery trade known
as the "Happiness Trade" which is expected to make all stakeholders happy,is
essentially based on honesty and integrity.Adherence to good business
principles would undoubtedly pave way for your success in business.
Editoral Committee.
Chairman's Message
It is encouraging to note that the gem and jewellery sector has recorded
an overall growth of 14% during the 1st eight months of 2007 in comparism
with the corresponding figure of 2006.
Under the guidance
of Hon. Dr Sarath Amunugama, Minister of Enterprise Development and
Investment Promotion who is assisted by Hon.Mano Wijeyeratne Minister of
Enterprise Development; series of proposals have been submitted to be
incorporated in the budget proposals for 2008,which would further facilitate
the industry.
In it's endeavors to promote the industry
the National Gem and Jewellery Authority "NGJA" has made arrangements to
organize "Sri Lanka Pavillion's" at eight major gem and jewellery shows in
2008.
The National Gem and Jewellery Authority (NGJA) is
in the process of finalizing arrangements with Sri Lanka Gem and Jewellery
Association to establish a state of the art Gem Testing Laboratory equipped
with modern equipment, which will issue an internationally accecpted
certificate.
The Authority has also launched an e-commerce
facility through it's website srilankagemautho.com, providing the opportunity
to local gem and jewellery traders to offer their products for sale on line.
I am happy to state that the National Gem and Jewellery Authority continues
to play a strong leadership role guiding the industry on a steady path of
expansion and growth while upholding the best interest of all stakeholders.
Hasitha Tillekeratne.
Chairman
National
Gem and Jewellery Authority.
Big Boost for the Gem
and Jewellery Sector
Interview with Mr Thosapala Hewage, secretary to the
ministry of Enterprise Development and Investment Promotion.
By Janaka Perera.
A state of the art gem testing laboratory is in the
offing according to secretary of the Ministry of Enterprice Development and
Investment Promotion Mr Thospala Hewage. He told gem talk that this is one of
the several programmes being introduced to boost the countries gem and
jewellery industry.
The purpose of the Gem Testing Laboratory will be to
further enhance the reputation of Sri Lanka as a prime source of fine
natural gems, by positively identifying and certifying them with the help of
modern equipment.
Several discussions held and matters are being finalized
between the National Gem and Jewellery Authority (NGJA) and Sri Lanka Gem and
Jewellery Association (SLGJA) under the guidance of the ministry.
The Ministry has noticed
that
miners and small scale
gem industrialists
do not reap the full
benefits of their efforts
due to the presence of
middle-men as
in the case of paddy and
vegetable cultivators
A welfare and insurance scheme for miners is among other
projects on the cards. Miners will be given specialized training and
introduced to safe mining methods.
The tax structure, Mr Hewage said, has already been changed
in order to safeguard this industry which the government has recognized as
one of the key areas in the economy because of the vast potential in the gem
and jewellery sector especially in the jewellery manufacturing and diamond
cutting industry.
The Government is providing a comprehensive array of
fiscal and financial incentives to companies investing in the gem and
jewellery manufacturing industry. A new enterprise in this area with a
minimum investment of at least Rs50 million and exporting not less than 80%
of output is entitled to a three year tax holiday followed by two years at a
10% corporate tax and 20% thereafter.
Further all imports of precious metals and gems (including
diamonds) have been exempted from the application of duty and value added
tax (VAT) under Sri Lanka laws. These policies have been framed with the
objectives of making Sri Lanka a center for manufacturing, trading and
retailing of gems, precious metals and jewellery.
Port and Airport development levy (PAL) have been removed
on gem, diamond and gold import with effect from January 1st 2007.VAT rate on
supply of jewellery has been reduced from 20% to 5% with effect from the
above date. Concessionary PAL rate of 2% for selected plant and machinery
imported for high value adding industry has been introduced.
Under SME sector Rs 13,295 million has been allocated at
concessionary rate of interest.A tax free threshold of Rs 600,000 for medium
scale partnerships has also been introduced. Among the other incentives is a
non refundable vat of 5% on turnover for SME for a period of three years or
until turnover reaches Rs2.5 million.
This years export performance in the gem and jewellery
sector up to August amounted to a total of Rs 33.2 billion in comparism to
Rs 44.9 billion for the whole of 2006.
The tax reforms, Mr Hewage said, is in accordance with
Mahinda Chintana which aims to propel the economy to a high growth path. Sri
Lanka, he recalled was the first country to receive tariff preferences under
the Generalized System of Preferences (GSP+) Scheme and remains the only
counter in the region except for Mongolia to receive this privileged status.
Under the taxation changes a 15% cess has been imposed on
the importation of jewellery,an annual registration fee of Rs5000 will be
imposed on jewellery manufacturers and an economic service charge(ESC) of 1%
will be applicable for local jewellery manufacturers..
Also to be introduced is
an exclusive
investment promotion
zone dedicated to the
gem industry in
accordance with His Excellency
The President's
Mahinda Chintana Programme.
Here foreign investment will be promoted via the Board of
Investment (BOI). The Free Trade Agreement between Pakistan and India
is expected to facilitate this project. Under this scheme exhibitions will
be held, where India and Pakistan will have the opportunity of promoting
their gem and jewellery products and in turn Sri Lanka will have a chance of
promoting hers in exhibitions held in two countries. Products to which 30%
value will be added here ,will be treated as Sri Lankan products.
In expanding the gem industry, Mr Hewage observed the need of the National
Gem and Jewellery Authority to build up greater coordination with different
state establishment such as the Forest Department and the Wild Life
Conservation Department since many gem deposits are found within the wild
life santuries and natural reserves.Gem prospecting would have to be done in
these areas with minimum damage to the natural environment using advanced
mining techniques.
Mr Hewege added that Sri Lanka's
competitive advantage in the gem and jewellery sector is based on its:
(a)Long history of its artisan culture
(b)Competitive wage rates for skilled and semi-skilled workers
(c)Availability of a wide variety of precious and semi-precious stones.
(d)Existence of a special gem and jewellery development zone to facilitate
quick start up and access to skilled workers and gem stones and
(e) A business friendly government, with the minimum
formalities and a wide array of tax incentives.
