The National Gem and Jewellery Authority announced a revised tax structure for imported rough gemstones on 19 January 2026, framing the change as support for a sector targeting one billion US dollars in export revenue this year.
Under the previous regime, value-added tax on imported rough was tied to declared parcel value alongside an 18% VAT and a 2.5% Social Security Contribution Levy. Importers reported unpredictable clearance costs and long disputes at customs. A separate customs charge of 200 dollars per kilogram added further friction. Industry reporting described imports falling sharply through 2024 and 2025 as stones were routed instead to Bangkok, Dubai, and Hong Kong.
The new method assigns a fixed deemed value by weight rather than by invoice. Precious stones such as ruby, sapphire, and emerald are assessed at 900 dollars per kilogram for tax purposes. Semi-precious material uses a 50 dollars per kilogram deemed value. Smaller parcels are charged per carat: five dollars per carat for precious stones and one dollar per carat for semi-precious. The 200 dollars per kilogram customs charge has been removed.
Chairman S. P. Chaminda told reporters the revision reduces the financial burden on importers and restores predictability before a shipment leaves its origin country. For a one-carat precious stone, VAT and SSCL apply on a five-dollar deemed value, roughly one dollar in total tax at current rates.
For Sri Lanka's cutting and re-export trade, the policy is structural rather than cosmetic. When rough stops arriving, local faceters lose work, foreign buyers skip Colombo, and informal export channels widen. Whether import volumes recover depends on international traders noticing the change and trusting that the weight-based system will hold.
The authority is also upgrading laboratory certification so reports can state Sri Lankan origin where applicable and distinguish natural from heat-treated stones to international standards. That sits alongside the tax fix as part of a broader push to reclaim hub status rather than remain a mine-only origin.
