Sri Lanka’s gem and jewellery industry could face severe economic consequences if the United States proceeds with the proposed reciprocal tariff, the Sri Lanka Gem and Jewellery Association (SLGJA) has warned.
The association has called for urgent government intervention to protect this vital export sector, which supports the livelihoods of over 600,000 people, including miners, cutters, exporters, and designers.
The SLGJA emphasized that the planned U.S. measure would significantly disrupt the industry, which exports about 10 percent of its gemstones to the United States—either directly or through third countries such as Thailand, Hong Kong, Dubai, and Switzerland.
The imposition of higher duties would make Sri Lankan gems and jewellery less competitive in the U.S. market, potentially leading to devastating economic and social consequences for already vulnerable communities.
The association described the proposed tariff as a threat to decades of mutual economic benefit and warned that it could push small and medium-sized enterprises into crisis, resulting in widespread job losses across the sector.
Known globally for its high-quality sapphires and traditional craftsmanship, the industry is one of Sri Lanka’s oldest and most prestigious.
The SLGJA urged the Sri Lankan government to engage in constructive dialogue with the U.S. and relevant trade bodies to prevent the tariff from being implemented.
It also called for the reconsideration and permanent removal of the proposed measure, stressing that continued duty-free or preferential access to the U.S. market is essential for sustaining local livelihoods and meeting the expectations of American consumers.
