The National Gem and Jewellery Authority (NGJA) has introduced a simplified tax calculation system for gem imports, aimed at reducing the heavy tax burden that has previously discouraged importers, NGJA Chairman and CEO Dr. S.B. Chaminda said.
Speaking at a media briefing today, Dr. Chaminda noted that the introduction of the Social Security Contribution Levy (SSCL) and Value Added Tax (VAT) on gem imports from January 1, 2024, had led to a sharp decline in gem imports during 2024 and 2025 compared to 2023, negatively affecting gem exports as well.
"From January 2024, VAT was calculated based on the value of the gems in the imported parcel, with 18% VAT and 2.5% SSCL applied," he said. This approach, however, imposed a significant financial burden on importers, limiting activity in the sector.
Under the new system, a fixed value is assigned to imported gem parcels. Precious gemstones such as ruby, sapphire, and emerald are valued at USD 900 per kilogram, with VAT and SSCL calculated accordingly.
Dr. Chaminda explained, "For example, when a 1 kg parcel of gems valued at USD 900 is imported, the importer will be charged only USD 184.5 as VAT and SSCL, equivalent to Rs. 57,195 in Sri Lankan currency."
For semi-precious stones such as amethyst, topaz, and garnet, the value is set at USD 50 per kilogram, resulting in a VAT and SSCL payment of USD 10.25, or approximately Rs. 3,200.
Emphasizing the opportunities created by the new tax structure, Dr. Chaminda encouraged young entrepreneurs to explore the gem industry, particularly in importing, cutting, polishing, and re-exporting, to further strengthen Sri Lanka’s gem and jewellery sector.
