COLOMBO (Commodity Online): Unlike India, the Sri Lankan government has withdrawn the import duty on gold which was hailed by the industry in the island nation.

Considering the hike in import duty in India, Sri Lanka is set to attract a huge chunk of tourists who want to buy jewellery.

According to analysts, the removal of all taxes on gold imports will increase the demand for Sri Lankan jewellery in the international market and encourage industrialists.

Sri Lanka Gem and Jewellery Association said export prices for Sri Lanka’s jewellery will be highly competitive in the international market in the future.
   
This is following the removal of all taxes imposed on gold imports by the Central Bank from March 1. Gold is considered as a raw material in the international market. There were no taxes for imported gold earlier.

After introducing it in Sri Lanka for the first time in 2009 the jewellery prices went up. Export earnings as well as local earnings dropped considerably. Jewellery manufacturers will be encouraged to manufacture innovative designs again.

Sri Lanka Gem and Jewellery Association has over 300 members and they export gold jewellery to USA, UK, Switzerland, Denmark and Canada.

The jewellery prices will come down again and those who were waiting to buy jewellery can get the benefit now. The Gem and Jewellery Authority will take action to attract tourists and expatriates to purchase gold jewellery locally. The price of a gold sovereign is around Rs 32,000 now. It is expected to come down to about Rs 30,000.

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