When Sri Lanka announced a one-billion-dollar gem export target in April 2025, NGJA chairman Naveen Sooriyarachchi told media that roughly 90% of gemstones still leave through informal channels. The figure explains why official export statistics understate the true scale of the trade and why formalization became the government's first talking point.
Informal export does not always mean smuggling in the criminal sense. In practice it often means handshake sales, courier shipments without full NGJA documentation, and jewellery carried abroad by buyers who never appear in export ledgers. Speed and tax avoidance drive the behaviour; paperwork and licensing fees slow it down.
The formalization agenda pairs export licensing with Customs cooperation and technology investment for detection. The theory is simple: if more stones pass through licensed exporters, the state captures accurate trade data and can tax and promote the sector coherently.
Critics note that formal channels remain slower than informal ones even after tax reforms. Until licensing desks match the pace of the bazaar, the 90% figure will not move quickly. The target is direction; the customs queue is the test.
