Gem and Jewelry Exports

Sri Lanka's gem and jewellery industry stands as one of the world's most prestigious sources of precious stones, yet our export sector faces a critical crossroads. While our nation has supplied the global market with Ceylon sapphires and 75 other gemstone varieties for millennia, recent export trends reveal both tremendous opportunity and pressing challenges that every stakeholder—from miners to exporters—needs to understand.

The Current State of Sri Lanka's Gem and Jewellery Exports

Sri Lanka's gem and jewellery exports have experienced a notable shift in recent years. In 2023, we exported US$477.7 million worth of gems and jewellery^[1]. However, this figure declined to US$282.06 million in 2024^[2], representing a significant drop that has caught the attention of industry leaders and policymakers alike.

As of September 2025, our export performance stood at US$267.11 million^[2], indicating that the sector continues to face headwinds. President Anura Dissanayake has recognised this challenge, calling on exporters to work together to exceed US$1 billion in annual gem and jewellery exports^[1]—an ambitious but necessary goal for our industry's future growth.

Our major export markets include Switzerland, Israel, the United States, India, Thailand, Hong Kong, the United Arab Emirates, Belgium, France, and Japan^[2]. These established relationships provide a foundation for recovery and expansion, though competition in these markets remains fierce.

Why Sri Lanka Matters in the Global Gem Trade

Our Gemstone Heritage

Sri Lanka's reputation in the gem industry isn't recent—it spans over 3,000 years. Ratnapura, known as the "City of Gems," has been the epicentre of our sapphire production for millennia^[2]. We're renowned worldwide for Ceylon sapphires, the most sought-after variety, alongside other precious stones including Padparadscha sapphires, cat's eye chrysoberyl, rubies, spinels, tourmalines, and moonstones^[2].

Our five main gem-producing regions span the island, with Ratnapura remaining the primary hub. This geographical advantage, combined with generations of expertise, positions us uniquely in the global market.

Employment and Economic Impact

The gem industry isn't just about exports—it's about livelihoods. The sector currently employs approximately 600,000 people across mining, cutting, polishing, dealing, and jewellery manufacturing^[2]. For many communities, particularly in gem-producing regions, this industry represents the primary source of income and economic stability.

Current Market Challenges and Opportunities

Price Pressures and Supply Constraints

One of the most pressing issues facing our gem exporters is the significant rise in prices. Between 2023 and 2025, Sri Lankan gem prices increased by approximately 20 to 30 per cent^[2]. While this might seem positive on the surface, it's actually creating resistance from international buyers, particularly at major trade shows.

The root cause is straightforward: supply isn't keeping pace with demand^[2]. Tighter supplies at our mines, combined with extremely high global demand for quality stones, have pushed prices upward. For exporters, this means fewer stones available to sell, even as international markets seek more Sri Lankan gems.

Quality vs. Quantity

Industry leaders report that the real challenge isn't meeting demand for lower-quality stones—regular orders for single stones of 1 to 5 carats continue steadily. Rather, it's supplying the premium, nicer-quality gems that command the highest prices and margins^[2]. This quality constraint is limiting our ability to maximise export revenue.

Strategic Direction and Growth Prospects

Government Support and Industry Initiatives

The government recognises the gem and jewellery sector's potential as a foreign exchange earner. President Dissanayake's call to exceed US$1 billion in exports reflects a strategic push to revitalise the industry^[1]. This requires coordinated effort across the entire value chain—from miners improving extraction techniques to exporters expanding market reach.

The National Gem and Jewellery Authority (NGJA) plays a crucial role in supporting this growth through licensing, testing, valuation services, and enforcement activities^[5]. If you're involved in the gem trade, the NGJA provides essential services including gem testing, jewellery valuation, and mining consultancy.

Global Expansion Strategy

According to industry analysts, Sri Lankan gem traders are banking on global expansion and the inherent allure of Sri Lankan gems to sustain our competitive edge^[2]. This means exploring new markets beyond our traditional buyers and deepening relationships with existing partners.

Recent exhibitions like FACETS Sri Lanka 2025 showcase our craftspeople alongside global industry professionals, creating opportunities for direct connections with international buyers and investors^[1].

What This Means for Sri Lankan Stakeholders

For Miners and Producers

If you're involved in gem mining, the current environment demands efficiency improvements. Higher prices mean you need fewer stones to generate the same revenue, but supply constraints mean competition for quality gems is intense. Investing in sustainable mining practices and quality control can help you access premium markets.

For Exporters and Traders

Export-oriented businesses should focus on quality over volume. The market is willing to pay premium prices for superior stones, but price resistance is building at current levels. Developing relationships with buyers seeking specific stone types or qualities, rather than competing on volume, may prove more profitable.

For the Broader Economy

With 600,000 people employed in the gem sector, any improvement in export performance directly benefits our national economy and employment levels. The sector's contribution to foreign exchange earnings remains significant, even during challenging periods.

Frequently Asked Questions

What happened to Sri Lanka's gem exports between 2023 and 2024?

Exports dropped from US$477.7 million in 2023 to US$282.06 million in 2024^[2]. This decline reflects a combination of factors including increased global prices, supply constraints at mines, and shifting market demand. Industry experts attribute much of this to price resistance from international buyers who're facing higher costs.

Which gemstones is Sri Lanka most famous for?

Ceylon sapphires are our most renowned gemstone globally^[2]. However, we also produce Padparadscha sapphires, cat's eye chrysoberyl, rubies, spinels, tourmalines, and moonstones. In total, Sri Lanka produces 75 different gemstone varieties^[2].

What are Sri Lanka's main gem export markets?

Our largest markets are Switzerland, Israel, the United States, India, Thailand, Hong Kong, the United Arab Emirates, Belgium, France, and Japan^[2]. These established trade relationships provide a foundation for future growth.

How many people work in Sri Lanka's gem industry?

Approximately 600,000 people are employed across mining, cutting, polishing, dealing, and jewellery manufacturing^[2]. This makes the gem sector a significant employment provider, particularly in gem-producing regions like Ratnapura.

Why have gem prices increased so much?

Prices have risen 20 to 30 per cent between 2023 and 2025 primarily due to tight supply at mines coupled with extremely high global demand for quality stones^[2]. There simply aren't enough high-quality gems available to meet buyer demand, which drives prices upward.

What's the government doing to support gem exports?

President Dissanayake has called for the industry to exceed US$1 billion in annual exports^[1]. The government supports this through the National Gem and Jewellery Authority, which provides licensing, testing, valuation, and mining consultancy services^[5]. Industry exhibitions and trade missions also help connect Sri Lankan producers with global buyers.

Looking Forward: What Needs to Happen

Sri Lanka's gem and jewellery sector stands at a crossroads. We have unmatched heritage, world-class gemstones, and 600,000 skilled workers. Yet our export figures are declining, and we're losing ground in markets we've dominated for centuries.

The path forward requires action at multiple levels. Miners need to improve extraction efficiency and focus on quality. Exporters must develop stronger international relationships and explore new markets. The government must continue supporting infrastructure and trade initiatives. And all stakeholders must work together toward the ambitious but achievable goal of exceeding US$1 billion in annual gem and jewellery exports.

If you're involved in Sri Lanka's gem industry—whether as a producer, exporter, trader, or craftsperson—now is the time to strengthen your operations, invest in quality, and expand your market reach. The global demand for Sri Lankan gems remains strong; we simply need to meet it effectively.

Sources & References

1. Sri Lanka president calls for gem and jewellery exports to exceed USD1bn — EconomyNext
2. GemsWorld 2026 — JewelleryNet
3. Latest News - Media Center - gem-and-jewellery — Sri Lanka Business
4. Export Highlights — National Gem and Jewellery Authority (NGJA)
5. Statistics — National Gem and Jewellery Authority (NGJA)