Sri Lanka’s gem, diamond and jewellery export earnings has exceeded Rs 6,949.4 million during the first 11 months in 2010 recording a three percent growth as against Rs. 6,745.5 million gem export value recorded in the corresponding period in 2009.

According to National Gem and Jewellery Authority, the total Geuda and diamond re- export value for the first 11 months increased by 25 percent and two percent respectively when compared to the same period in 2009.

The total diamond re-export value was reported at Rs 33,738.7 million for the first 11 months in 2010 as against Rs 33,154.4 million in the same period in 2009. The diamond jewellery export value for the first 11 months in 2010 was Rs 279.9 million indicating a 30 percent decrease as against Rs 401.1 million diamond jewellery export value recorded in the same period in 2009.

Total jewellery exports recorded Rs 1,332.8 million in revenue from January to November, 2010.

The total export value of RIE (Rough Import and re-export) from January to November 2010 was Rs 157.2 million, although it was Rs 174.9 million in 2009.

USA, Thailand, Hong Kong and Switzerland were the main buyers of Sri Lankan gems from January to August 2010 and USA accounted for 27 percent in gem exports during this period.

Belgium, Thailand, Israel and Dubai were the main buyers of the country’s diamond re-exports from January to August 2010 and Belgium accounted for 72 percent in diamond re-export exports during this period.

USA accounted for 23 percent in Sri Lankan Jewellery exports for the first eight months in 2010 and Dubai accounted for 29 percent in the country’s diamond jewellery exports during the same period in 2010.
Various incentives offered during the past five years have helped promote gems and jewellery effectively in the global market, the National Gem and Jewellery Authority said.

The 2011 budget has proposed to increase the foreign exchange allowance granted to import raw gem stones from US$ 10,000 to $ 50,000 per person.

Sri Lanka’s gem industry has a very long and colourful history. Marco Polo wrote that the island had the best sapphires, topazes, amethysts, and other gems in the world. Ptolemy, the second century astronomer recorded that beryl and sapphire were the mainstay of Sri Lanka’s gem industry. Records from sailors that visited the island state that they brought back “jewels of Serendib”. Serendib was the ancient name given to Sri Lanka by middle – eastern and Persian traders that crossed the Indian Ocean to trade gems from Sri Lanka to the East during the fourth and fifth century Currently Sri Lanka produces gems from exquisite one-of-a-kind Blue Sapphires, Star Sapphires, Rubies, Pinks, Yellows, Orange Sapphires, Padparadschas, CatsEyes, Alexandrites and Chrysoberyls to Garnets, Spinets, Moonstones, Aquamarines, Topazes specially cut or calibrated.

Sri Lanka's Blue Sapphires known as Ceylon Sapphires are considered to be the finest in the world unique in colour, clarity and lustre. "Blue Giant of the Orient”, the largest faceted blue sapphire in the world, was found in 1907 at the foot of Adams Peak, in central highlands of Sri Lanka which is a UNESCO World Heritage Site now.

There's another deep blue Sri Lankan sapphire known as "The Bismarck Sapphire" that gets its name from Countess Mona von Bismarck who purchased the gem during her visit to Sri Lanka in 1926 on her worldwide honeymoon cruise with her millionaire husband Harrison Williams in his own steamer the Warrior, one of the largest and most expensive pleasure boats of the time. In 1967 she donated the priceless piece of jewelry to the National Museum of Natural History of the Smithsonian Institution at Washington D.C.

Sri Lanka’s gems have found their way to many a court since time immemorial. King Solomon, the epitome of wisdom had gems bought from Sri Lanka to woo hearts and win the hand of Queen Sheba, legendry folklore states. Sri Lanka’s precious stones are better known as Sihalite and Celonite. The stones are cut and polished to improve lustre. Radiance and luminosity are factors that determine the price of precious stones.

The blue sapphire in the diamond studded engagement ring presented by Prince William to Kate Middleton is also from Sri Lanka.