Press investigations in 2025 spotlighted mechanized gem mining near the Sinharaja forest buffer zone, including Botiyathenna, where environmentalists allege prohibited equipment was used in river reserves.
National Environmental Regulations prohibit backhoes, bulldozers, and similar extraction machinery within defined river reserve distances. NGJA is the sole gem licence issuer, but environmental law sets equipment limits that licences must respect.
Critics argue some licences were granted in ecologically sensitive areas without adequate oversight. State officials were accused of supporting illegal mechanized work. NGJA can revoke licences for non-compliance and inspect sites under the authority act.
For the gem trade, the controversy is reputational. International buyers increasingly ask about mining impact. A UNESCO-adjacent forest and mechanized pits are a bad pairing for ethical sourcing narratives, regardless of stone quality.