Single tax reform aims to unlock SL’s gem wealth By Bandula Sirimanna View(s): View(s):Sri Lanka’s gem and jewellery industry is set to enter a decisive new phase as the Government moves forward with a landmark tax reform designed to simplify trade, curb illegal exports and revive a sector with vast unrealised economic potential. At the heart of this policy shift is a proposed single tax per parcel on gemstones imported into the country for value addition, an initiative policymakers believe could restore confidence, transparency and growth across the industry. This has prompted the government to proposed a “single tax per parcel” to curb illicit activities and boost legitimate exports, though challenges with smuggling and inconsistent policies persist, Industry Minister Sunil Handunnetti disclosed. It has lead to industry concerns, though efforts are underway for simplification, including a proposed single tax for value addition and tourist refunds (TVRS) to boost competitiveness. The aim of the new taxation is value addition, moving from raw exports to finished products, with a new “single tax per parcel” approved for imported rough gems to encourage processing.

Source: Sunday Times January 03, 2026 18:59 UTC