International Colored Gemstones Association (ICA) regional Ambassador to Sri Lanka, Altaf Iqbal said that “allowing large scale foreign mining in Sri Lanka could impact nearly 600,000 miners, lapidarists, brokers, wholesalers, jewellers, and retailers - people who are directly employed in the industry.”
He added that Sri Lanka uses traditional mining methods in very sustainable manner through small scale operations bound by strict green mining regulations, however he noted that “large scale mining, such as the 'Mozambique ruby' operation, could flood the market with over supply.
The 'rarity factor' would be seriously affected, if this should happen."
The President during a discussion with industry stakeholders on Friday last week was alerted of moves by foreign companies who intended on mining gems through local companies who served as proxy.
It was revealed that 100 acres of land has been purchased by the companies in Dodampe, Paradise Estate in Kuruwita, and in the Karangoda area in the district alone.
Chairman of the National Gem and Jewellery Authority (NGJA) Asanka Welagedara said that the President has been given a detailed report warning of potential dangers of foreign companies who were already staking their interest territorially.
Stakeholders in the industry were increasingly concerned following a recent announcement in a Singapore auction that unpolished Sri Lankan gems would be made available at next year’s auction.
Hot on the heels of this stern directive by the President a Task Force comprising of Government officials will be appointed to monitor and prevent entry of foreign companies from getting involved in gem mining locally.
Iqbal added that “several international gem dealers have voiced their concerns about foreign companies being involved in operations locally, "as they are holding large stocks of sapphires and fear the fallout from potential supply increases."
Iqbal has conveyed these sentiments through ICA, which the Sri Lankan Gem and Jewellery Association is a member of.
ICA has widely shared the bulletin with their members globally.
