Committee on Public Finance Focuses on Issues Related to the Gem and Jewellery Industry
The Committee on Public Finance of Parliament held extensive discussions on issues related to the gem and jewellery industry.
These matters were discussed when the committee met in Parliament on 27.01.2026, under the chairmanship of Hon. Member of Parliament Dr. Harsha de Silva. The meeting was attended by Deputy Ministers Chathuranga Abeysinghe, Dr. Kaushalya Ariyaratne, and Nishantha Jayaweera, as well as Hon. Members of Parliament Ravi Karunanayake, Harshana Rajakaruna, Nimal Palihena, and Wijesiri Basnayake.
Representatives of several organizations representing different segments of the gem and jewellery industry and business sector briefed the committee on the challenges faced by their respective fields. They highlighted that the absence of a long-term national policy for the gem and jewellery industry has resulted in significant difficulties, and strongly emphasized the need to formulate a robust national policy for the sector.
They further pointed out that the industry could be strengthened by relaxing existing regulations to encourage exports, reviewing and restructuring the role of the National Gem and Jewellery Authority, introducing safe harbour rules for income tax, implementing VAT reforms specific to the gem and jewellery industry, regulating foreign entities operating informally, and promoting foreign investment.
In addition, industry representatives drew the committee’s attention to issues such as the prohibition on the use of scanning equipment during gem mining operations and the declining availability of land for existing mining activities, which pose serious challenges to the sector.
In his concluding remarks, the Chairman of the Committee stated that the discussions helped identify key problem areas within the industry, particularly in relation to liberalization (both fiscal and physical), administration, and policy matters concerning mining operations. Accordingly, he emphasized that the committee intends to consolidate these issues into a comprehensive discussion paper and engage in a series of productive discussions with senior officials of the relevant ministries.
