Sri Lanka gem industry merger will combine regulation, research and training as the Government targets annual exports of US$1 billion.
The Sri Lanka gem industry merger will deliver the sector’s most significant institutional overhaul in more than three decades as the Government pursues US$1 billion in annual exports.
The Government will merge the Gem and Jewellery Research and Training Institute with the National Gem and Jewellery Authority. Officials expect the restructuring to remove duplication, strengthen regulation and support the industry’s export ambitions.
The Cabinet of Ministers approved the proposal earlier this week. Industry and Entrepreneurship Development Minister Sunil Handunnetti submitted it for approval.
Under the plan, the GJRTI will become the dedicated Research and Training Division of the NGJA.
The Cabinet decision also authorises the legal measures needed to complete the restructuring under the National Gem and Jewellery Authority Act No. 50 of 1993.
Although the decision may appear largely administrative, officials say it addresses a structural weakness that has restricted industry growth for nearly three decades.
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Sri Lanka gem industry merger ends overlapping roles
The Government established the NGJA in 1993 as the country’s principal regulator for the gem and jewellery industry.
Two years later, authorities created the GJRTI to manage research, technical development and industry training.
However, the two organisations increasingly operated in parallel. They often carried out overlapping responsibilities while following separate policy directions.
Government officials acknowledged that maintaining two independent institutions with related duties created unnecessary public expenditure. It also fragmented policymaking and weakened the efficient use of state resources.
The latest reform will bring research, technical development, vocational training and industry regulation under one coordinated authority.
Officials believe the integrated structure will improve policy consistency. It could also remove bureaucratic delays that previously slowed decisions and industry support programmes.
The restructuring supports Sri Lanka’s wider economic agenda. The Government views the gem and jewellery sector as an important source of foreign exchange and wants annual exports to reach US$1 billion.
Technology, transparency and global trading standards
Industry analysts believe placing research directly under the national regulator could accelerate technology transfers to manufacturers and exporters.
The Authority could distribute advanced gemstone heat-treatment techniques more efficiently through its industry networks. Precision cutting methods and improved jewellery-manufacturing processes could also reach businesses faster.
The merger should also strengthen Sri Lanka’s compliance with international trading standards.
Combining the GJRTI’s technical gemological expertise with the NGJA’s regulatory and enforcement responsibilities could strengthen anti-money laundering safeguards.
Officials also expect the reform to increase transparency and improve Sri Lanka’s credibility within global gemstone markets.
Vocational education forms another central part of the Sri Lanka gem industry merger.
National Vocational Qualification diploma programmes in gemology and jewellery manufacturing will align directly with national industry policies. This approach aims to ensure that workforce development responds to changing market requirements.
The GJRTI’s 15 regional training centres will continue operating as decentralised NGJA extension centres. The network includes facilities in Ratnapura, Kandy and Jaffna.
This structure is expected to provide miners with support through a more coordinated regional training and regulatory framework.
