The Key Factors Affecting The Competency In Value Addition To Gem And Jewellery In Sri Lanka

Abstract

Gem and jewellery industry in Sri Lanka plays a vital role contributing immensely to foreign exchange earning to the country’s economy. The industrial value chain begins with gem mining and ends with retailing of jewellery while, several stages are included amid. It is imperative to be discerned that every stage involves trading, resulting export of a larger amount of semi-finished products without adding the premium value which creates lack of competitiveness. Statistical data illustrates a clear disparity in terms of revenue generated through the gem exports as opposed to jewellery exports. Thus, the discrepancy between country’s resource capacity and its level of fabrication has inspired to conduct this research work. The main objective of this study is to explore the key factors which cause the low competency in value addition of gem and jewellery industry in Sri Lanka. The required data was collected through an extensive literature survey and several face-to-face, in-depth interviews with experts in the gem and jewellery industry. The results of the data analysis concluded that there are six major constraints affecting the low production and exporting of gem set jewellery in Sri Lanka, namely; lack of innovation, lack of technology, lack of market, lack of competent man power, lack of financial resources and lack of integration and long term plans as the main findings of this study.