For centuries, the island has been famed for its precious gems. The availability of these precious stones and of superior manufacturing skills highlight Sri Lanka's potential as an international centre for jewelry.The traditional lapidary trade boasts superior skill levels. These skilled operators have contributed to our diamond cutting and polishing industry becoming one of our most recent export success stories. This expertise is matched by very competitive cutting charges and excellent craftsmanship, especially for the smaller stones where labour costs are significant.
In addition, jewelry is now exported to Germany, Japan, the Middle-East and the United States.
A new enterprise which is engaged in the manufacture of je ellery, cutting and polishing of ge s with a minimum investment of at least Rs 10 million and exporting n t less than 70% of output would be entitled to a 20 year tax holiday. Existing BOI/non-BOI companies investing an additional sum of R 5 million and exporting not less th n 70% of output too will be granted a total of 20 years tax holiday.
Any new company engaged in the tr ding of gems, diamonds and gold will be granted a 20 year tax holiday, pr vided such enterprise receives at le st 90% of its income in foreign currency.
Furthermore, all precious metals an gems (including diamonds) have been exempt from the application of duty, VAT under the "normal laws". These policies have been framed with the obective of making Sri Lanka a centre for manufacturing, trading and retailing in gems, precious metals and jewellery