Although gems and jewellery worth US$477 million were exported in 2023, exports have fallen by 25% to US$360 million last year (2024) after the imposition of taxes on the gem and jewellery industry, says Chairman of the National Gem and Jewellery Authority (NGJA) – Mr. Navin Sooriyarachchi.

He stated this at a media briefing held at the Government Information Department yesterday (July 07).

This media briefing was held to inform the media about the newly opened VAT Refund Counter at the Bandaranaike International Airport in Katunayake.

He said that following discussions with the International Monetary Fund (IMF), taxes were imposed on their industry from January 01, 2024.

Accordingly, an 18% VAT was imposed when selling gems and jewelry to tourists as well as when importing rough gemstones. In addition, a 45.14% tax was imposed on gold imports, he added.

Noting that the NGJA has issued about 8,000 mining licenses, he said that these should produce gemstones worth over US$ 1.5 billion annually, assuming that around 50% of these mines were profitable.

He added that Gem and Jewellery had the potential to be the second largest primary export of the country.

However, following the imposition of the 18% VAT, sales have declined significantly, Mr. Sooriyarachchi says, adding that competitive practices such as post purchase VAT refunding followed by other countries have further affected this situation.

It is reported that 02 senior DIGs and 07 DIGs have simultaneously left for overseas courses.

Eight of them have gone to India for a course that will be held until July 12th. 

The Police HQ has taken measures to appoint other SDIGs and DIGs to cover duties of these officers, reports say.

The officers who are overseas in these manner are Senior DIGs Waruna Jayasundara and Dhanapala Abeywickrama as well as DIGs Sujith Wedamulla, Nuwan Mendis, Udith Liyanage, Pradeep Kalupahana, Sarath Kumara, Indika Hapugoda and H.C.A. Pushpakumara.

The Colombo Magistrate’s Court has ordered to further remand Dr. Maheshi Wijeratne, a consultant neurosurgeon attached to the Sri Jayewardenepura General Hospital, until July 15.

Dr. Wijeratne was previously arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and subsequently remanded.

Colombo Chief Magistrate Thanuja Lakmali issued the order after considering the facts presented by officials from the CIABOC and legal representatives of the defense.

The court also ordered the release on bail of two other suspects who had been remanded over the same case.