The government has introduced a series of regulatory measures to support and modernize Sri Lanka’s gem industry, following approval by the Cabinet of Ministers.
Acting on a resolution presented by the President in his capacity as Minister of Finance, Plan Implementation, and Economic Development, the government has enacted new orders and regulations aimed at simplifying taxation and customs procedures for gemstones.
Key measures include:
- Weight-Based VAT for Gems:
Value Added Tax on genuine and semi-genuine gemstones imported into the country will now be calculated based on weight, under an order issued in terms of Section 6 of the VAT Act No. 14 of 2002 (Extraordinary Gazette No. 2461/43, dated 07.11.2025). - New Customs Codes:
The Revenue Security Order No. 04/2025, issued under the Revenue Security Act No. 19 of 1962 (Extraordinary Gazette No. 2461/40, dated 07.11.2025), introduces national sub-division customs codes for gemstones, aligning customs procedures with the new weight-based VAT system. - Ports and Airport Tax Adjustments:
An order issued under Section 3 of the Ports and Airport Development Tax Act No. 18 of 2011 (Extraordinary Gazette No. 2461/44, dated 07.11.2025) ensures the continued application of the new customs codes for gem imports at all ports and airports.
Authorities say these reforms are intended to improve transparency, streamline processes, and promote growth in Sri Lanka’s gem sector, strengthening the country’s position as a global leader in the gemstone industry.
