KUALA LUMPUR, Asia Pulse – Sri Lanka expects its gem exports to rise by another 10 per cent in 2007 and help it earn US$100 million in revenue.

Sri Lanka is among the world’s five top gem exporters and in 2005 earned US$80 million despite political turmoil and civil war.

"Until August this year gem exports recorded a marked increase totalling US$67 million.

"We expect exports to increase by another 10 per cent next year to US$100 million. This will boost our economy which is growing at eight per cent annually," Sri Lanka’s National Gem and Jewellery Authority chairman, Hasitha Tillekeratne, told Bernama.He said until August, gem exports recorded 27 per cent growth compared with the same period in 2005 and contributed six per cent to the overall economy.

Blue sapphire, or the national gemstone, is the leading variety among the 75 different gem stones found in the country — where 70 per cent of the land mass is considered potentially gem-bearing.

Yellow, orange and pink sapphires, aquamarine, ruby and topaz are among some of the famous gems mined, polished, cut, designed and exported to the US, Europe, Hong Kong and Thailand.

Tillekeratne said Sri Lanka wanted to reposition itself as a major gem and jewellery hub in the region by 2010.

"The global gem market is growing, fuelled by rising demand and attractive prices as gem stones are also bought for long-term investments.

"Spurred by the healthy market trend, gem dealers now want to explore new buyers.

"Besides the new emerging markets, mainly China and India, Eastern bloc countries like Russia, Bulgaria, Slovakia are also on their list, where dealers want more coloured stones.

"The current market interest is the coloured stones. Last time it was only diamonds," he said.

Twelve leading Sri Lanka gem exporters have been showcasing their merchandise at the four-day 12th Malaysia Jewellery Festival 2006 ending here Monday.

In November they are expected to participate in the China International Gold Jewellery and Gem Fair in Shanghai. -DM Financial Times

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