More foreign buyers seen at this years’ FACETS exhibition

While Sri Lanka is witnessing a vast number of tourists visiting the country from all parts of the world, this year’s FACETS exhibition saw more foreigners purchasing gems and jewellery. The purchasing power for the locals dropped with the 18 per cent Value Added Tax (VAT) that came into play since the beginning of this year.

FACETS, Chairman, Altaf Iqbal made these remarks to the Business Times last week following the three-day exhibition held on January 6-8 at the Cinnamon Grand Hotel in Colombo.

Mr. Iqbal said, “There were 100 serious business to business buyers, more than 8000 people and close to 1000 foreign passport holders attended the exhibition within the three days. A lot of foreigners bought gems and jewellery where we saw the purchasing power for the locals dropped due of the 18 per cent VAT.” Foreigners who were staying at the Cinnamon Grand Hotel and those who were at all other Colombo City hotels visited the exhibition, he added.

He also stated that the small and medium enterprise gem stone dealers were very happy while the top end jewellery sellers saw a slow movement of business, but overall this years’ exhibition was a positive outcome.

On the first day of the exhibition the Business Times witnessed an envoy from a South East Asian Country placing the first order on a blue sapphire which was showcased in the sapphire masterpiece pavilion.

Sri Lanka Gem and Jewellery Association, President, Ajward Deen during the opening ceremony of the exhibition stressed that the industry will have to survive with VAT going up from 15 per cent to 18 per cent. “High taxes can disrupt the industry and it could become a burden on operating costs. Some policies of the government are killing the business while they must explore countries like Vietnam and know how gem and jewellery businesses are flourishing,” noted Mr. Deen.

Minister of Industries and Health, Ramesh Pathirana at the opening ceremony also reiterated that tax cuts and paye tax cuts made Sri Lanka’s economy collapse. “Sri Lanka’s economy will sustain this year and the years to come while the export income has to be far better in 2024. The government is duty bound to ensure that whatever the income generated as taxes from all industries, benefits the people at the ground level.”