Dilrook Kannangara

If functioning well, the gem industry has the highest local value addition of all exports. Unlike garments, EPZs and tea, the gem industry does not have imported raw materials. There is no requirement for foreign investments as locals are capable of investing with required machinery and expertise. In other words, the net export value (exports minus related imports) of the gem industry is the highest among Sri Lankans exports and the return on investment of all export industries is highest in the gem industry.

However, unfortunately, the industry is dominated by extremist and other elements whose best interests are not the national economy or exports. Their interests are sectarian, lie elsewhere and contrary to the betterment of Sri Lanka. One such gem trading company was involved in funding Islamic terrorism. They are currently investigated in connection with the funding of sanctioned Islamic terrorist Ahmed Luqman Talib (https://home.treasury.gov/news/press-releases/sm1157). Mr Talib, also known as Adam Taleb and Ahmad Luqman migrated to Sydney from Sri Lanka in 1995 and a number of his associates and friends in Sri Lanka are engaged in gem and jewelry industry. He is just one example of an industry corrupted and polluted by extremist elements. Unsurprisingly, it is also a failure on the part of the government authority that overlooks the industry.

Certain others involved in the industry fund extremist education centres in the island, repatriate a large amount of foreign currency earnings and even finance foreign extremist events, schools and groups.

In addition to extremism, high value parts of the industry are dominated by a group of people from a certain creed that is not conducive for national economic progress and hinders and restricts others. Vast majority of Sri Lankans are kept out of high value processes of the industry. This is totally unacceptable.

This must change.

The industry must be restructured to reflect the plurality of the Sri Lankan society at the high value end of the industry. Extremist elements and their associates must not be allowed to operate in Sri Lanka directly and through agents. The industry high end processes must change hands in favour of Sri Lankan economic interests and other national interests. The industry can meaningfully contribute to overcome current economic crises.

Unless these changes happen, a great fortune of the land will remain a great misfortune.