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Facets 2011 – Chinese buyers snap up most of the Ceylon blue sapphires at the show

Facets 2011, the 21st version of Sri Lanka’s only international gem and jewelry show, organized by the Sri Lanka Gem & Jewelry Association (SLGJA) and sponsored by the National Gem & Jewelry Authority (NGJA) of Sri Lanka and the Sri Lanka Export Development Board (SLEDB), was held successfully between September 8 and 11, 2011 at the Sirimavo Bandaranaike Memorial Exhibition and Convention Center, at Bullers Road, Colombo. The show was declared open by the Chief Guest at the event, Mr. Rishad Bathiudeen, Minister of Industry and Commerce. Mr. Hans George Wild, the renowned colored gemstone dealer and lapidary owner, based in Idar-Oberstein, Germany, was the Guest-of-Honor at the occasion and was associated with the heads of the Russian and Chinese trade delegations. Among other distinguished guests who participated in the event were Senior Minister A.H.M.Fouzie, the Chairman of the Export Development Board Mr. Janaka Ratnayake and the Chairman of the National Gem & Jewelry Authority General Rohan Daluwatte.

Addressing the gathering soon after declaring open the show, Minister Rishad Bathiudeen said, “As the international gem market recovered, the gem mining sub sector, which declined by 17.2% in 2009, too recovered and grew by 7.9% in 2010. The Gem and Jewellery sector, which was severely affected by the global meltdown, has been able to register a positive upwards trend, from minus 26% growth in 2009, to 1.56% in 2010. In 2010, Sri Lanka exported diamonds and jewelry to the value of US $ 335 million and US $ 70 million of Gems. Gem and jewellery contributes 5% to our total exports earnings. Gem and other mining also was the top sector contributing to the 15.5% growth in mining and quarrying subsector in 2010. There are more than 600,000 people engaged in the gem mining to market cycle.”

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Minister of Industries and Commerce, Rishad Bathiudeen ceremonially opening Facets 2011 on September 8, 2011

 Speaking on the great potential of the gem and jewelry sector in contributing to the overall export earnings of the industrial sector, the Minister said, “I believe that if we focus well, the gem and jewelry sector also could become a major growth driver to achieve our 2015 export earnings target of US $ 15 billion. The National Gem & Jewellery Authority of Sri Lanka has set a target of US $1 billion through gem and jewelry exports by 2016. It is in this context that I see the great potential of this sector. I am glad to announce that day before yesterday we launched the Sri Lanka Expo 2012 show to be held in March 2012. I invite Sri Lanka’s gem and jewelry industry to become a key exhibitor in this show”

Elaborating further on Sri Lanka’s historical position as a source of high-quality gems, and the contribution of the gem and jewelry industry to the economy in modern times, in terms of generating foreign exchange and employment, Mr. Bathiudeen said, “From ancient times Sri Lanka had been widely known as a supplier of highly treasured gems. Sri Lanka’s mineral rich soils have been yielding a seemingly never ending supply of high quality precious and semi-precious gem stones such as sapphires, star sapphires, rubies, cats eyes etc.  The Gem and Jewelry industry’s contribution, to the economy, in terms of foreign exchange earnings and employment generation is commendable. Therefore, all efforts taken to promote and strengthen this industry are indeed welcome and I am happy to be associated with the Sri Lanka Gem and Jewellery Association, which is the main organizer of the show” 

Commenting on the advantages of FACETS in promoting the gem and jewelry industry and trade in the South-Asian sub-region he said, “I am happy to announce that the Ministry of Industry is always committed and ready to support the Industry to take part in Expo 2012 show and also to find new international markets.  FACETS, being one of the leading trade fairs held in the Asian Region, looking forward to expanding trade ties with India, Pakistan, and Bangladesh, also creates a perfect platform, to the local manufacturers to enter the market, as well as providing a unique opportunity for the Gem & Jewelry industry stakeholders in neighboring countries to view and buy our products.

In conclusion the Minister said, “ I express my deep appreciation to the Chairman and the Organizing Committee of “FACETS” for the  initiatives taken in  organizing the Facets Sri Lanka show annually, offering a perfect platform to the Sri Lanka Gem and Jewelry industry to showcase its capabilities

As expected, there were nearly 7,500 visitors attending the show, an increase of 2,500 visitors, when compared to last year’s attendance of nearly 5,000 visitors, a percentage increase of nearly 50%. Of this nearly 1500 were foreign visitors, of whom 175 were gem trade visitors representing trade delegations from different countries, and the others were independent foreign visitors, the bulk of them coming from India. There were two 19-member trade delegations from China, organized by the Sri Lanka Embassy in Beijing, and a 16-member trade delegation from Russia arranged by the Export Development Board of Sri Lanka. Other delegations came from India, Thailand, Myanmar, Europe and the USA. The number of exhibitors, participating in the show, also increased by 50% this year, with a total of 154 booths displaying their products at the show. While 99 booths in the main hall, displayed precious and semi-precious gemstones, 55 booths in the second hall displayed jewelry, lapidary and other machinery used in the industry. A special feature of FACETS 2011 was the creation of a collector’s corner that provided visitors the opportunity to view rare and important gemstones from the collection of the National Gem & Jewelry authority of Sri Lanka. The enthusiasm shown by the foreign participants, particularly the Chinese was unprecedented, as indicated by the strong sales to foreigners registered during the period of the show that exceeded US$ 10 million, equivalent to SL Rupees one billion, considered high by Sri Lanka standards. More than 50% of the stall holders reported direct sales to Chinese buyers, and the gems sold were mainly the Ceylon blue sapphires, ranging in price from US$ 50 to US$ 5,000 per carat.

An upbeat FACETS Sri Lanka Chairman, Mr. Chanaka Ellawala speaking to journalists said,
“The downward trend in our gem and jewellery industry due to the 2008 global recession is now over. After the sales dip in 2008 and 2009, in 2010 there was a slight improvement and this year appears to be the turn-around year. More than 50% of stall-holders report direct sales to Chinese buyers. This shows that Sri Lanka is earning the confidence and trust of the Chinese regarding Ceylonese Gem supply. After Chinese buyers, Russians followed, though not at the high levels of Chinese purchases.

Speaking on the popularity of the Ceylon Blue Sapphire and the unprecedented demand shown for the gem by buyers at the show, mainly the Chinese, Mr. Ellawala said, “The number one preference for foreign buyers were Ceylon Sapphires, specifically, the Blue Sapphires. The Blue sapphires sold in the FACETS ranged from US $ 50 per carat to $ 5000 per carat. The blue sapphire sales were possibly boosted by the recent British Royal Wedding in which the centerpiece of the couple’s engagement ring featured an 18-Carat oval-shaped blue sapphire from Sri Lanka. But more importantly, Sri Lanka has been lately earning a reputation as a consistent supplier of big sized Blue Sapphires –that is above five carats, often 10 carats and above, that other sources of sapphires such as Madagascar and Australia are not able to match. In short, Sri Lanka is internationally unmatched when it comes to sources of high-quality and consistent supply in blue sapphires; the reasons for higher sales of our blue sapphires. This proves again that Sri Lanka’s most popular and top gem brand is the Ceylon Blue Sapphire”

Mr. Ellawala added, “This year’s FACETS was such a boost for the gem and jewellery community of Sri Lanka and it showed that Sri Lanka’s decision to reach out to BRIC countries, specially India, China and Russia was correct.

 

Speaking on the sales to local Sri Lankan buyers, he said, “ The Sri Lankan buyers were more focused on jewellery than gems. “Sri Lankans chose gold and silver jewellery. Meanwhile the diamond sellers reported good sales too though their buyers were not retails buyers but industry buyers purchasing diamonds in bulk for setting in fine jewelry manufactured by them”  

 

The Chairman/CEO of the National Gem & Jewelry Authority of Sri Lanka, who too expressed satisfaction with the outcome of 2011 FACETS, said, This year’s FACETS is very encouraging and highly positive, and a result of our efforts of trying to reach out to the new players in the international gem and jewelry, the BRIC countries of Russia, India and China.” 

An elated Nawrooz Azmi, Assistant Secretary of the Sri Lanka Gem and Jewelry Association revealed that sales to foreign buyers alone easily exceeded US$ 10 million. He said, “This is just the initial estimate and it could be much more. When added to sales to Sri Lankans, the total transaction values during FACETS could be far higher. For the first time in the history of FACETS, we have advanced bookings and we are now processing stall bookings for the 2012 show. Our continuous promotional efforts in China and Hong Kong have paid dividends, since most of the foreign buyers at FACETS 2011, were from these two countries.” Referring to the popularity and demand for the Sri Lanka blue sapphire at the show, which were snapped up by the Chinese buyers, he said, “This shows that the Ceylon Blue Sapphire, especially after the British Royal Wedding of 2011, is becoming another lifestyle precious stone of choice joining the ranks of diamonds and rubies. The positioning of blue sapphire has strongest appeal among the Yuppie segment,”  a reference to the young upwardly mobile professionals, associated with mobile phones, money, expensive cars, and prestigious city jobs.

 

The Assistant Manager, Exports, of the National Gem & Jewelry Authority of Sri Lanka, Ms. Nandani Abeyratne, confirming China’s entry as the leading foreign buyer of Sri Lanka’s gems, said, “China is becoming the biggest consumer of our gem exports. This is despite the 37% tax imposed at the Chinese end for imported gems from Sri Lanka” 

Continuing in the same vein, Ms Ioma Dias, Assistant Manager of Export Promotion of the National Gem & Jewellery Authority of Sri Lanka, revealed that the turn of the Ceylon Blue Sapphire, for gemstones with the greatest international demand, has now arrived.  She said, “Strong demand for our blue sapphires among foreign buyers, shows, that the world is now well aware about the potentials of our blue sapphire”  

All in all by Sri Lankan standards the performance of FACETS 2011 can be described as an outstanding success, and judging by the preference of foreign buyers for the Ceylon Blue Sapphire, it appears that Sri Lanka is once again set to become the hub of the international sapphire trade and industry in the near future, a position the country had previously held from time immemorial, until the discovery of alternative sources of the valuable gem.

A Presentation on the Gems & Gem Deposits of Vietnam – by Dr. Gamini Zoysa, Consultant Geologist/ Mineralogist

The National Gem & Jewellery Authority of Sri Lanka organizes periodic lectures and presentations every year, by specialists in different fields of the gem & jewellery trade and industry, to educate the people involved in different sectors of the industry, of the current trends and developments in various fields, in keeping with its objectives of developing the gem & jewelry trade & industry in Sri Lanka. One such lecture was held on January 26, 2011, the first for the year 2011, and was delivered by Dr. Gamini  Zoysa, Consultant Geologist/Mineralogist. The topic of Dr. Gamini Zoysa’s lecture was “Gems and Gem Deposits of Vietnam” a timely theme, as Vietnam becomes a major source of rubies and sapphires in Asia, joining the limited group of nations in the world, endowed with this rare mineral resource, occurring together, such as Sri Lanka, Burma, Afghanistan, Pakistan, Tajikistan, Nepal,  Thailand, Cambodia in Asia; Madagascar, Kenya, Tanzania and Mozambique in Africa;  the Harts Range in the Northern Territory of Australia; the U.S. states of Montana,  North Carolina and South Carolina and recently the receding ice shelf of Greenland. Sri Lanka like Thailand is increasingly dependent on gemstone resources of other regions such as Southeast Asia and East Africa to sustain its expanding gem & jewelry industry, as local supplies of rough gemstones are becoming increasingly scarce. Thus, it is not surprising to find increasing numbers of Sri Lankan gem dealers competing with their counterparts from Thailand and other nations, for the gem resources of countries like Madagascar, Tanzania and Mozambique. It is in this context that the presentation by Dr. Gamini Zoysa is timely and relevant, as Vietnam emerges as a source of ruby, sapphire and other gemstones, such as red and blue spinel and tourmaline and large quantities of these gemstones appear in the gem markets of Bangkok and Hong Kong.

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Dr. Gamini Zoysa delivering his lecture

The first discovery of high-quality ruby deposits in Vietnam came from Luc Yen in Yen Bai Province, northwest of Hanoi, in Northern Vietnam in 1988. Placer deposits of ruby were discovered by farmers during routine agricultural activities. This accidental discovery in 1988, spurred intentional exploratory activities across the country, both in the North as well as the South, that led to the discovery of a second ruby deposit in the North, in Quy Chau, southwest of Hanoi, in the latter part of 1990.  This led to a wild-west type gem-rush, with over 300,000 miners converging on the area, and one of the poorest provinces in Vietnam, suddenly becoming one of the richest. The mad rush for the “red-gold” led to rapid environmental degradation, with miners digging and burrowing into the hills and valleys of Quy Chau district. Mining accidents increased by the collapsing and caving-in of mining tunnels. In 1991, in a single accident over 60 people were killed by a massive cave-in. Apart from accidents, the generation of new wealth attracted armed bandits, mainly ex-soldiers into the area, who  waylaid travelers along the remote roads of Quy Chau district.  With the mounting security problems and mining accidents, the Central Government of Vietnam stepped in, to bring peace and order to the mines. The gem-bearing areas were mapped out by geologists and the most promising sites were auctioned off to Vietnamese companies.

In Luc  Yen, ruby deposits were associated with lesser amounts of sapphire and spinel, both blue and red spinel and also gem-quality tourmaline and garnet. In Quay Chau ruby deposits were associated only with lesser amount of blue to violet and orange sapphire, but there was no spinel. The ruby from Quay Chau was similar in appearance to that from Luc Yen, with distinctive blue zones of color, like the rubies of Jagdalek, in Afghanistan. In Tan Huong  and Truc  Lau, also in North Vietnam, south of Luc Yen, ruby was found and exploited by local farmers in 1994. Hundreds of kilograms of rubies and star rubies were exploited illegally in this region and sold to foreign dealers until 1996, when the Vietnam National Gem and Gold Corporation intervened and exploited the deposits under its management. It is in this region that in April 1997, two large ruby crystals of very high quality, one weighing 2.58 kg and the other 1.96 kg were discovered and declared as State Treasures. Associated gem minerals in this region were red spinels and blue sapphires.

In Southern Vietnam corundum deposits are mainly sapphire in placer deposits formed by the erosion of alkaline basalts, discovered and exploited since the late 1980s. In the Dak Nong region in Dak Lak province, sapphire crystals up to 1.5 cm long and 0.2 to 0.4 cm wide are found, ranging in color from dark blue to blue, and green and yellow. In the Ma Lam and Da Ban areas of Binh Thuan province, barrel-shaped crystals of sapphires ranging in color from very dark blue to deep blue are found.  Zircon and peridot are found associated with the sapphires.  Aquamarine was first discovered in Xuan Le in Thanh Hoa province in 1985 by a field geologist.  Other gem materials associated with aquamarine were topaz, zircon and black tourmaline. The aquamarine crystals were high-quality, with hexagonal prismatic shapes, sea-blue color, transparent and with sizes ranging from 5 cm to 20 cm long and 1 cm to 6 cm in diameter. Topaz in Xuan Le are colorless to yellow in color, with high transparency and suitable as gem-material. Tourmaline, quartz and garnet are found as accessory minerals.  Gem-quality aquamarine, 3-4 cm in diameter and sometimes 10-30 cm long, with a sky blue color have been exploited in Thach Khoan in North Vietnam.  Tourmaline, quartz and garnet are found here as associated minerals. Olive-green to  yellowish-green gem peridot is also found in Ham Rong and Bien Ho basaltic areas of the Gia Lai province.

Quartz is one of the most abundant and widely distributed minerals in Vietnam, found both in the north and south. Smoky quartz, rose quartz and amethyst are among the varieties of quartz found.  Smoky quartz is found in pegmatite at Xuan Le in Thanh Hoa province, Ky Son in Nghe An province, and Thach Khoan in Vinh Phu province. Good quality amethyst with high transparency and an attractive purple color is found in Don Duong in Lang Son province and Chu Boc in Gia Lai province. Rose quartz have been found in Da Nang.

Jadeite and Nephrite were found in Co Phuong in Son La province. They are greenish in color and used only for carving fine-art products. Agate found in Loc Ninh is used for necklaces.

Thus, from the foregoing account it is evident that Vietnam is blessed with a variety of both precious and semi-precious stones. However, out of these the main deposits that could be economically exploited are ruby, sapphire, aquamarine and topaz. In southern Vietnam, potential economic deposits of blue sapphire, zircon and peridot are also present. Other minerals such as spinel, tourmaline and quartz are also widely distributed, and may play an important role in future, in the gem industry of Vietnam. It is expected that future exploratory activities might lead to the discovery of additional gemstone deposits of economic significance, and Vietnam would take its rightful place as a major player in the international gem and jewelry industry.

 

Presentation on the Usage of Rapid Designing & Rapid Prototyping Technology in the Jewellery Industry by Prof. J.A.K.S.Jayasinghe, Engineer B.S. Samarasiri and Miss Vajira Peiris

In line with the policy of the National Gem & Jewellery Authority (NGJA) of Sri Lanka in helping to develop and modernize the gem and jewelry industry of the country, by introducing the latest cutting-edge and time-saving technology in the manufacture of jewelry, adopted by jewelry manufactures in the more advanced countries of the west, a presentation was organized by the Authority on February 8, 2011, on the timely topic, “Usage of Rapid Designing and Rapid Prototyping Technology in the Jewellery Industry.” The resource persons who conducted the presentation were Prof. J.A.K.S. Jayasinghe, Prof of Electronics & Communication, University of Moratuwa,  Engineer B.S. Samarasiri, Director, Engineering Design Center, University of Moratuwa, and Miss Vajira Peiris, Lecturer, University of Moratuwa. The presentation was well attended and appreciated by an enthusiastic audience who were present on the occasion.

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A section of the enthusiastic crowd at the presentation held on February 8, 2011

Computer-Aided Design (CAD) and Rapid Prototyping (RP) technologies are playing an increasingly important role in many industries including the jewelry manufacturing industry. There are three basic methods of making jewelry – 1) hand fabrication 2) casting, either whole or in components 3) machine production by die stamping and jig assembly manufacture. Hand fabrication and casting are the two methods adopted by Sri Lankan craftsmen in jewelry manufacture from time immemorial, and still remains the most popular methods of jewelry manufacture in the country. Both methods are time-consuming, but still remain popular, as they yield a product satisfying the requirements of both the seller and the consumer. Once a piece is completed by one of the two methods, it goes through the process of finishing, by smoothing and polishing and if required gemstone setting, before reaching the display shelf of jewelry store.

Casting by a method known as “lost wax casting” or “investment casting” is the most popular method of jewelry manufacture in Sri Lanka, as it lends itself easily to mass production, with the advantage of much lower capital costs. When making complicated and intricate designs, it may be necessary to produce several cast components, which are then soldered together to give the final product. Even the solder used is an alloy of gold, silver or platinum, and must conform to assay requirements. Casting is one of the earliest metal techniques evolved by mankind, with a history of over 4,000 years, and believed to have been first developed by the Mesopotamians. Casting is still the most popular method of jewelry manufacture in many parts of the world. Computer aided designing (CAD), Rapid prototyping (RP) and Computer aided manufacturing (CAM), have now been successfully incorporated into this age-old technique to mass produce a model-piece of jewelry.

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Presentation on "usage of rapid designing and prototyping technology in the jewelry industry" in progress

The steps involved in investment casting are, designing; making of primary model in hard alloy, like nickel-silver or just silver; making of rubber mold from primary model; making of many copies of the primary model in wax, using the rubber mold; arranging the wax models in a metal cylinder (flask)  around a central feeder (sprue), in a casting machine, like  a tree; pouring of thick liquid of investment plaster mixed with water into the flask, covering the wax models in the tree, followed by removal of air bubbles and cooling. The investment plaster sets to form stiff and hard molds; heating of the inverted flask in a kiln or furnace, that melts down the wax (lost wax process), leaving behind the investment plaster molds; pouring of molten gold or its alloy into the investment plaster molds in the flask, which is then allowed to cool and solidify. When cooling is complete, the flask is immersed in cold water, that breaks off the investment mold, leaving the casts in the tree; the castings are cut off and smoothened and polished into jewelry pieces.

Computer aided designing (CAD) and rapid prototyping (RP) are incorporated into the time-consuming steps of designing and model making. These techniques allow designers to simplify the iterative design or to easily change or adjust details of sketches, to facilitate sketching of jewelry products in any sizes, and to shorten the time required to make models. CAD software used for jewelry designing are Unigraphics, ArtCAM and JewelCAD. Rapid prototyping involve fabrication of models layer by layer, called layer manufacturing (LM), and is done in a machine, called the Stereo Lithographic Apparatus (SAL).  The RP prototype is used to make silicone rubber molds, from which many copies of wax models are produced, arranged as tree around central feeder in a casting machine, followed by pouring of investment plaster to produce plaster molds, used in casting the designed jewelry. The use of CAD and RP technologies shorten the production time and enable production of high-quality pieces as good as and indistinguishable from traditionally hand-made pieces.

 

 

 

Presentation by Vincent Pardieu, Supervisor, Field Gemology at the GIA Laboratory, Bangkok, Thailand, on April 7, 2011 at the NGJA headquarters, Colombo, Sri Lanka

The National Gem & Jewelry Authority (NGJA) of Sri Lanka, in keeping with its policy of organizing informative and educative presentations by renowned specialists, on various fields of the gem and jewelry industry and trade, recently invited a world renowned authority on Field Gemology, Mr. Vincent Pardieu, of the GIA Laboratory, Bangkok, Thailand, to deliver a presentation on the “Rubies from Mozambique” based on his expeditions and  collection of samples undertaken  in the autumn of 2009 after  the discovery of the Montepuez deposits in the spring of the same year, and subsequent studies and research projects undertaken by the GIA, Bangkok Laboratory, on the samples of rubies collected, that are still ongoing. The presentation was timely as increased quantities of rubies from Mozambique, both treated and untreated have started making their appearance, in international gem trading centers around the world, and more Sri Lankan gem dealers have diverted their attention towards East African countries as a source of rubies and sapphires, and other varieties of gemstones, such as tanzanites and tsavorite garnets. The presentation was very much appreciated by an enthusiastic audience who were present on the occasion. After the presentation, Mr. Vincent Pardieu was presented with a Memento, by the Acting Chief Valuer of the NGJA, Mr. S.C. Edirisinghe.

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Mr. Vincent Pardieu making his presentation

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A section of the enthusiastic audience at the presentation by Mr. Vincent Pardieu

Mr. Vincent Pardieu, who characterizes himself as a “Shameless Travel-Addicted Gemologist” in his website Field Gemology.org is the “Supervisor, Field Gemology” at the GIA Laboratory Bangkok. His area of specialization is the “origin determination of gemstones,” a crucial field in gemology, as geographic origin of gemstones is a parameter that may affect their market value. Even though it is generally agreed that geographic origin should not be used as a quality factor in assessing gemstones, since even the most renowned gem-mining areas produce many low-quality gems, and vice-versa, areas that are not so renowned and more recent, produce high-quality gems, sometimes even surpassing the quality of gems produced from renowned areas, Yet, like in Art where works by renowned artists fetch higher prices than those from less renowned ones, geographic origin still plays an important part in determining the final value of gems. This necessarily means that gems of equivalent beauty and quality but mined in different geographical areas, might have different market values based on their origin. Accordingly, gems originating from more famous and romantic traditional mining areas may have a higher market value than similar gems mined from a less famous and more recent source. This aspect of marketing gemstones has now been further modified recently by new legal and ethical concerns applied by many consumer markets despite strong credentials of famous and romantic origins, such as the renowned Mogok rubies originating in Burma. Thus, origin determination of gemstones has become a crucial factor in deciding the market value of gemstones, and has become an important part of gemological research undertaken by Vincent Pardieu at the GIA Bangkok Laboratory.

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Mr. Vincent Pardieu and his students with the Acting Director-General of NGJA Mr. Ajith Perera

Vincent Pardieu, who read Physical Chemistry at the University of Bordeaux in France from 1988 to 1994, later did a program in Marketing and Business at ESARC, Toulouse, France from 1994 to 1995, subsequently becoming a tour guide, specializing on Europe and Asia. He first studied gemology at the GGA, Yangon, Myanmar, in the year 2000, becoming an Associate Gemologist (AG), and later at the GIA Thailand in 2001, becoming a Graduate Gemologist (GG). He became Director of AIGS in October 2004, in which capacity he served until February 2007. He then joined the Gubelin Gem Lab as Laboratory Gemologist, specializing on “origin determination of colored stones.” He joined the GIA Laboratory, Bangkok, Thailand, as Supervisor, Field Gemology in December 2008, in which capacity he is serving until today.

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Mr Vincent Pardieu being gifted with a memento by the acting Chief Valuer of the NGJA Mr S C Edirisinghe

Vincent Pardieu is renowned worldwide for his numerous expeditions to gem-mining areas in Asia and Africa and his subsequent publications in various magazines, and his own website www.fieldgemology.org.

A Presentation by Mrs. Maj-Britt Anna K. Baker, Gemologist & Consultant attached to Ananda Miners (Pvt.) Ltd. on the topic, “Salient Points in Successfully Handling a Jewelry Export Order”

The National Gem & Jewellery Authority in keeping with its policy of educating people involved in various sectors of the gem & jewelry trade and industry, on topics relevant to their field, have been organizing lectures periodically by various specialists in different fields, both local and foreign. One such presentation was held on April 28, 2011, at the NGJA headquarters in Colombo. The presenter was Mrs. Maj-Britt Anna K. Baker, Gemologist & Consultant attached to Ananda Miners (Pvt) Ltd. a renowned gem-mining, processing, jewelry-manufacturing, gem-mining and processing machinery manufacturing and exporting company, based in Sri Lanka. The topic dealt with by Mrs. Baker was, “Salient points in successfully handling a jewelry export order,” a timely subject, considering the number of prospective exporters trying to enter the competitive field of export marketing. The presentation was well attended and appreciated by an enthusiastic audience. Soon after the presentation, Mrs. Baker was presented with a token of appreciation by the Acting Director General of the National Gem & Jewellery Authority, Mr. Ajith Perera.

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Mrs. Anna K. Baker making her presentation

Ananda Miners (Pvt) Ltd. is a gem-mining, processing and exporting company, that has been in business for over 20 years.  The company situated at Henegama, Pokunuwita, in the Western Province of Sri Lanka, maintains its own lapidaries and also engages in the heat treatment of gemstones.  The company that has operated mines all over Sri Lanka, have during the past 10 years expanded into the manufacture of machinery used in the gem industry. The company pioneered the use of gem gravel washing machines in Sri Lanka, which has now become popular not only in Sri Lanka but also internationally. These machines are exported by the company to many countries, such as India, Madagascar, Tanzania and Somalia. The latest addition to the company’s line of products is the gold and heavy mineral sand separator, known as the “Black-Sand Unit,” which is very efficient in separating fine gold particles from sand.

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Mrs. Anna K. Baker explaining details of some jewelry items designed by her to a group of enthusiastic participants

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Mrs. Baker presented with a token of appreciation by the Acting Director General Mr. Ajith Perera after her presentation

The National Gem & Jewelry Authority of Sri Lanka classified as a category “B” State Owned Non-Commercial Enterprise

The Department of Public Enterprises of Sri Lanka has by its Circular No. PED/POL/2 issued on April 29, 2011, designated the National Gem & Jewellery Authority (NGJA) of Sri Lanka, as a Category “B” self-funded State-Owned Non-Commercial Enterprise (SONCE), with effect from May 1, 2011.

A State-Owned Non-Commercial Enterprise (SONCE) is defined as an enterprise incorporated by an Act of Parliament, owned and controlled by the Government and executing a statutory function without the main purpose of earning profits.

SONCEs that generate sufficient funds for their operational activities are classified as self-funded SONCEs.

State-Owned Enterprises vary in terms of size of operations, government investment, total assets, number of employees and their business complexity.

National Gem & Jewelry Authority of Sri Lanka Participates in the National Celebrations of World Environment Day – 2011

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Logo of World Environment Day

The United Nations General Assembly in 1972 declared June 5 of every year as “World Environment Day” to raise awareness among the peoples of the world to the problems of environmental degradation such as deforestation, over exploitation of natural resources, environmental pollution, uncontrolled emission of green-house gases, depletion of the ozone layer, global warming, climatic change, rapidly receding polar ice-caps etc., that threatens the survival of all forms of life on this planet, the Earth, and for which mankind and his activities had been largely responsible. By declaring such a day the UN hoped to sensitize and inspire millions of people around the world to join in a common celebration of individual and group actions for positive change.

The theme adopted for the World Environment Day – 2011 was “Forest – Nature at Your Service,” which apparently was chosen intentionally to supplement the UN’s “International Year of the Forests” which falls this year. The theme chosen for the day, “Forests – Nature at Your Service” underscores the many essential life-sustaining values that forests provide and the intrinsic link between our quality of life and the health of the forest eco-systems.

In Sri Lanka, the national celebration of the International Environment Day, was held at Pinnawela National School, under the patronage of the Minister of Environment, Hon. Anura Priyadarshana Yapa and the presence of the Speaker of Parliament, Hon. Chamal  Rajapakse. The choice of Pinnawela for the national celebration was most appropriate, as Pinnawela has become internationally renowned, as the home of a wildlife conservation project, the Elephant Orphanage and Nursery. The Ministry of Environment assisted in the renovation of the main hall of the school, where the celebrations were held. The Ministry also donated laboratory equipment valued at Rs. 70,000 to the Pinnawela National School, the venue of the national celebrations, while other schools in the area also benefited by receiving laboratory equipment valued at Rs. 50,000 each. Among the events organized to mark the day, was an “Environmental Walk” in which 1,000 school students participated, a “Green Award Ceremony” for entrepreneurs, an extensive tree planting campaign with the participation of students and the general public and an Exhibition in which not only government organizations connected with the environment, forestry, conservation etc. took part, but also other government departments and parastatals, such as the National Gem & Jewelry Authority (NGJA)  and the Export Development Board.

The participation of the NGJA at this event was significant, as the organization is in the forefront of encouraging environmental-friendly mining for gems in the Sabaragamuwa Province of Sri Lanka, where Pinnawela is situated, a province that is also the home of the internationally renowned city of Ratnapura  (the City of Gems), a source of the world renowned Ceylon blue sapphire and Ceylon rubies, since very ancient times. Environmental degradation associated with gem-mining in the district has been a source of concern to the NGJA, which in association with other government bodies had cracked down on illegal mining activities in the province, and has encouraged environmental-friendly, sustainable mining activities, that bans the use of heavy equipment for mining and requires the filling up of gem pits after they have been worked to their maximum.

The following photographs depict the participation of the National Gem and Jewelry Authority and the Export Development Board in the Exhibition held at the Pinnawela National School to mark the World Environment Day on June 5, 2011.

Outside view of the NGJA stall at the World Environment Day 2011 Exhibition

Outside view of the NGJA stall at the World Environment Day 2011 Exhibition held at Pinnawela National School

The Speaker of the Sri Lanka Parliament, Hon. Chamal Rajapakse listening intently to an explanation on an exhbit at the NGJA stall

The Speaker of the Sri Lanka Parliament, Hon. Chamal Rajapakse listening intently to an explanation on an exhbit at the NGJA stall

Top officials of the NGJA at the NGJA-stall of the World Environment Day Exhibition

Top officials of the NGJA at the NGJA-stall of the World Environment Day Exhibition

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Anxious crowds waiting for their turn in the state pavilion of Sri Lanka

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School children queuing up to view exhibits in the state pavilion of Sri Lanka

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A busy stall of the export development board of Sri Lanka

 

Sangems & Jewellery receive International Star for Leadership in Quality Award

M/s Sangems & Jewellery of Sri Lanka received international recognition in Paris in April 2011, when the company successfully won the “International Star for Leadership in Quality Award ,”  for outstanding business achievements, perseverance and leadership, in excellence and quality in accordance with the  QC 100 Criteria. The awards ceremony is an annual event organized by the organization Business Initiative Directions, based in Madrid, Spain.  The National Gem & Jewelry Authority congratulated M/S Sangems & Jewellery for their unique achievement in bringing credit to the country in general and the gem and jewelry industry in particular, raising the profile of the country as a source of high-quality jewelry. M/s Sangems & Jewellery is a member of the “Sri Lanka Gem & Jewellery Exchange” the Government sponsored gem & jewellery gallery in Sri Lanka which is operated under the National Gem & Jewellery Authority of Sri Lanka.

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International Star for Leadership in Quality Award received by Sangems & Jewelry

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Proprietors of Sangems & Jewellery receiving the Leadership in Quality Award at Paris

Participation of NGJA at the “Ayurveda Expo 2011″

The  “Ayurveda Expo 2011” was held at the exhibition hall of  the Bandaranaike International Conference Hall  between the 15th and 17th July 2011. The National Gem  &  Jewelry Authority  of Sri  Lanka  also had its own pavilion at this annual popular event.  The participation of the NGJA in this event  while helping  to popularize the activities of  the Authority among the general public, also served as a welcome variation from the general theme of the exhibition.  The NGJA  pavilion  at the exhibition was well attended and evoked much enthusiasm among the general public, who were given  the opportunity of not only having  an insight into the working of the authority, but also learning more about the variety of  gems and jewelry  produced in Sri Lanka, and making any purchases if  they  so desired.

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Visitors at the NGJA stall of the "Ayurveda Expo 2011"-1

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Visitors at the NGJA stall of the "Ayurveda Expo 2011"-2

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Visitors at the NGJA pavilion of the "Ayurveda Expo 2011-3

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Visitors at the NGJA pavilion of "Ayurveda Expo 2011"-5

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Visitors at the NGJA pavilion of the "Ayurveda Expo 2011"-6

The Sri Lankan Gem & Jewelry Industry – A Bright Future

The Sri Lankan Gem & Jewellery Industry – A Bright Future
By Ajith Perera – F.G.A
Actg. Director General, National Gem & Jewelry Authority – Sri Lanka

From time immemorial, Sri Lanka has had a sparkling reputation for highly treasured gems.  Sri Lanka’s mineral rich soils have been yielding more than 70 varieties and sub varieties of gemstones out of the 200 varieties known to Gemologists.  The gem industry in Sri Lanka is of great antiquity.  Legend says that King Solomon in Biblical times wooed the Queen of Sheba with precious stones from Sri Lanka.  Many years later, Prince Charles mesmerized Lady Diana with an engagement ring set with a priceless Blue Sapphire from Sri Lanka.  That very ring has symbolized the engagement of Prince William and Kate Middleton; who entered holy matrimony on 29th of April, focusing world attention on Blue Sapphires from Sri Lanka.

Let us take a close look at the Sri Lankan Gem and Jewelry industry which has been identified by the Government as one of the thrust areas of export development.  The Government has provided pro active policy environment and enabling facilities to assist the development initiative of the gem and jewelry industry.

The victory over terrorism has opened new vistas for expansion and development for the industry.  The global economic meltdown which hit us in the last quarter of 2008, and continued in to the 2nd quarter of 2009, was a major challenge.  Our traditional markets of U.S.A, Europe and Japan were the most affected.  We rose to this challenge by focusing strongly on new emerging markets such as China, Russia & India, which boasted economies with highest development.

Accordingly to Mr.Wilson Yuen, President of International Colored Gemstone Association.  China’s middleclass will grow to 350 million by the year 2030 that is more than the current population of the U.S.A. China’s expanding economy, rising standard of living and vast foreign investments are likely to create a huge new business opportunity for the Sri Lankan gem & jewelry industry.  Having realized this great opportunity, the National Gem and Jewelry Authority (N.G.J.A) has taken the initiative under the guidance of Hon. Anura Priyadarshana Yapa, Minister of Environment to organize “Sri Lankan Pavilions”  at major international Gem and Jewelry Trade Fairs & Exhibitions in China; encouraging Sri Lankan Exporters to participate and showcase their products.  The ‘NGJA’ with the able assistance of the Sri Lankan Embassy in Beijing and Consulate in Shanghai have  been putting a lot of effort in to opening the gates to the vast Chinese market to Sri Lankan members of the trade, highlighting the green and ethical mining methods practiced in Sri Lanka.

Similarly India, which recorded an export revenue of USD 28 Billion in the 2009/2010 fiscal year from Gems, Diamonds & Jewelry has been our 5th gem, export destination in value terms in 2010.  India which exported gems to the tune of USD 1.44 Billion is yet to identify Sri Lanka as their leading sourcing country.  India also enjoys an export revenue of USD 8.84 Billion from Jewelry while offering unlimited opportunities to our jewelry manufacturing exporters.

It is evident that the Global Gem and Jewelry industry is witnessing the interplay of various factors that could change its structure in multiple ways.  Such factors include, among others, a shift in global economic dynamics, increasing role of regulation, technological advances, increasing consumer sophistication and activism, emerging of alternate retail channels such as internet & television, increasing emphasis on transparency, professional work practices and corporate governance. It is believed that progressive players in the industry could play a role in shaping the future by predicting some of these trends and preparing themselves for changes that are likely to happen.  As the famous saying goes “It is far better to foresee even without certainty, than not to foresee at all”.

The price of gold has been volatile from day to day. On 19th of July 2011 it touched the record figure of USD 1607/00 per troy ounce. Twelve years ago in 1999, it was a mere USD 255.00; per Troy Ounce.  Analysts have predicted gold prices to reach the historic peak of USD 1700.00 per troy ounce by 2015.  Several factors such as global fears of rising inflation, volatile situation in the Middle East & North African Countries, a surge in investment demand, state of U.S. finances & weakening of the US dollar, European debt and increased demand from China & India have contributed to this price escalation.  The impact of the high gold prices is visible in the local market.  Customers are in a dilemma and currently stay away from fresh orders.  Both consumers and wholesalers appear to be waiting on the sidelines for more sizeable dips to provide more attractive buying opportunities.

The decision of the government to remove NBT on the import of gold brought in some measure of relief for the domestic & export jewelry industry.  Increase in gold prices has forced many jewelers to make light weight jewelry, which has become a latest trend among consumers.  Similarly a thriving market has emerged for Palladium, Silver and Steel jewelry with modern designs.

Our jewelry collections are luxurious and unique but also accessible, and we believe these will make us stand out in the global jewelry market. We used to have only one campaign which was anchored on Sri Lanka’s gem industry.  Our country however has so much more to offer to the world. The music, dance & poetry that are in our hearts are evident in the unique pieces that our jewelers create.  More importantly, the depth and breadth of our product offerings are truly amazing from one of a kind pieces to fashionable but price friendly pieces.  Our jewelry has global appeal, and that is one of our strengths.

Jewelry takes on an even greater meaning, because we attach an emotional value to it.  Jewelry is a celebration of beauty, but more importantly it is a celebration of life.

Sri Lanka’s solution to stay competitive in the global market has been to upgrade its production processes, through improved technology, particular focus has also been placed on the development of the new design skills and on increasing marketing efforts to establish Sri Lankan Brand names in the world market.  Going one step further the ‘NGJA’ intends to establish a Central Design Centre which could obtain up to date designs and pass them to the manufacturers and traders.

The Sri Lankan gem and jewelry industry has seen a significant success so far and has developed considerable capabilities in the past few decades.  However it has not yet outlined for itself a clear growth and transformation agenda, to ensure sustainable, long term value creation.  The industry is now at a stage where it needs to evaluate the impact of some of the changes mentioned above and also strategies on the future direction of growth for all parts of the industry value chain; based on the salient factors of supply development, demand development and capacity building.

“Tomorrow belongs to the people who prepare for it today”

21st July 2011