Sri Lanka’s jewellery and gem sector remains optimistic about its growth prospects despite potential U.S. tariffs, with industry leaders predicting only a minimal impact on exports. The confidence comes as the industry recorded an 8.2% drop in export earnings to $195.1 million during the first half of the year.
Speaking in Colombo on Tuesday at the launch of the FACETS Sri Lanka 2026 exhibition, Sri Lanka Gem and Jewellery Association President Akram Cassim said the proposed 20% duty was manageable compared to rates faced by competitors. “It’s not too bad in comparison to some of the other countries that compete with us,” he noted, pointing out that Brazil, a smaller competitor, is currently subject to a 50% tariff.
The industry is banking on FACETS Sri Lanka 2026, scheduled for January 3–5 at the new Cinnamon Life complex, to drive trade and showcase the country’s unique ‘mine-to-market’ value chain. FACETS Chairman Armil Samoon highlighted Sri Lanka’s status as one of the world’s most celebrated sapphire producers and the largest source of sapphires mined and crafted entirely domestically. He described the exhibition as a vital platform for small and medium enterprises (SMEs) to connect with international buyers and expand into new markets.
Over its 31-year history, FACETS has helped hundreds of SMEs gain their first export orders and understand global trade, with many now leading the nation’s gem trade. Organizers said the move to Cinnamon Life marks a strategic reinvention of the show, with Cinnamon Life CEO Sanjiv Hulugalle promising a ‘multi-sensory global relevant experience.’
While exports have dipped, industry leaders believe Sri Lanka’s ethical sourcing, exceptional craftsmanship, and premium gemstone quality will continue to drive demand. Cassim added that as a rare commodity, gemstones may even see stronger buying interest despite tariffs. Positioned as the first major gem and jewellery event of the year, FACETS 2026 aims to give global buyers an early opportunity to secure orders and strengthen Sri Lanka’s standing as the heart of the sapphire world.
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