Police in Ratnapura have arrested a 35‑year‑old suspect in connection with a robbery involving gems, gold jewellery, and other valuables from a house in the Welihinda area in Kuruwita.

According to the Police, officers from the Ratnapura Police Station carried out the arrest on Tuesday (12) after receiving information about a break‑in.

Per the complaint, the suspect allegedly entered a house at night, threatened occupants with a knife, and stole gems, gold jewellery, and other property. 

The suspect was taken into custody along with the stolen items.

He was produced before the Ratnapura Magistrate’s Court yesterday and remanded until May 25.

The Ratnapura Police are conducting further investigations into the incident. (Newswire)

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A collection of gemstones valued at Rs. 250 million was released without board approval by the National Gem and Jewellery Authority (NGJA) just days before the 2024 presidential election, it was revealed during a Committee on Public Enterprises (COPE) hearing.

During the proceedings, NGJA Chairman Naveen Sooriyarachchi said that the authority does not receive import data from Sri Lanka Customs, making it difficult to maintain accurate records and valuations.

COPE members referred to media reports of an unauthorized release of gemstones in 2024, confirming that the parcel in question was valued at 21,096 karats (approximately USD 78,017). Officials admitted that no approval had been sought from the NGJA Board of Directors for the release of the jewels in September 2024.

Following legal action, when the gemstones were recovered, a portion of them was missing, a COPE member disclosed.

Valuation Discrepancies

Further questioning revealed that at the time of the incident, Ramesh Pathirana served as the Cabinet Minister overseeing the sector, while Chamara Sampath Dassanayake was the State Minister. COPE members also inquired whether Viraj de Silva, the NGJA chairman at the time, had been appointed by Dassanayake.

The COPE was informed that after the gemstones were recovered, they were released to the same individual upon payment of a fine of just Rs. 10,000.

The NGJA Export and Sales Director said that the board had approved the release based on instructions from another official, who was also present at the hearing. However, when questioned by COPE, the said official contradicted the previous official’s remarks, stating that he did not authorise the release.

Meanwhile, Valuation Director of the Authority said that she had noted discrepancies in the valuations and estimates recorded in invoices. Again, officials were unable to explain why the initial valuation of the gemstones was Rs. 20 million (2 crores) but later increased to Rs. 150 million (15 crores).

Industries Ministry Secretary Thilaka Jayasundara who was also present at the hearing expressed frustration over the incident, stating that Sri Lanka could have generated greater revenue if the NGJA had not been involved. She cited her own negative experiences in the state sector as the reason for her remarks.

Meanwhile, the Attorney General’s Department was only informed of the release after the gemstones had already been handed over, raising further concerns about procedural failures, COPE revealed. (Newswire)

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The exports of gems and jewellery have generated an income of USD 315 million from January of this year to date, State Minister for Primary Industries Chamara Sampath Dasanayake announced. 

He further highlighted that the gems and jewellery sector has demonstrated an impressive export growth rate of 34%, a fact corroborated by reports from the Central Bank.

State Minister Dasanayake made these remarks at the media briefing held at the Presidential Media Center yesterday (Aug. 22).

The full statement of the State Minister for Primary Industries Chamara Sampath Dasanayake: 

The National Gem and Jewellery Authority stands as a pivotal contributor to our nation’s foreign exchange reserves. We have undertaken numerous strategic decisions concerning the operations of this authority. In the previous year, we achieved a significant income of USD 230 million through gem exports. Notably, in the year (2023), our gem and jewellery exports have yielded a substantial revenue of USD 315 million.

Historically, concerns arose regarding the remittance of foreign exchange earned through gem exports. To address these issues, a novel customs clearance system was devised under the aegis of the new government. Presently, each exported gem is meticulously assessed to ensure the inflow of foreign exchange. In the past, our gems were auctioned abroad, but our country did not receive the appropriate remuneration.

The Central Bank’s reports confirm a remarkable 34% growth in export revenue for the Gems and Jewellery Authority. Steps have also been taken to resolve exporters’ challenges, with open lines of communication for exporters accessible at all times.

Last year, the authority’s revenue from licensing and assessment fees amounted to a modest Rs. 144 million. However, this year alone, the authority has recorded a substantial profit of Rs. 288 million. Consequently, we have devised strategies to enhance the authority’s profits by a remarkable 200% by year-end.

In the past, foreign exchange reserves were scarce in our nation. The Ministry of Primary Industries has spearheaded initiatives to alleviate this issue. 

Furthermore, it is worth noting that our employees are not reliant on government salaries. The Gems and Jewellery Authority, independently, contributes between Rs. 50 and 100 million to the Ministry of Finance, underscoring our commitment to the nation’s economic well-being.

Furthermore, it’s worth noting that a mere six months have elapsed since I assumed leadership of the Phosphate Institute. Originally falling under the jurisdiction of the Ministry of Industry after being transferred from the Ministry of Agriculture, the Phosphate Institute was subsequently placed under the umbrella of the Ministry of Primary Industries by the President’s decree. When I took the helm of this institution, it was saddled with a bank overdraft of Rs. 150 million, leading to a precarious situation where employee salaries couldn’t be met. Today, I am pleased to report that all these challenges have been successfully resolved.

The ongoing Russian-Ukrainian conflict has led to a surge in demand for our phosphates. Moreover, a protracted 23-year-old controversy surrounding the phosphate trade within the country has been finally laid to rest. This legal matter had previously impeded our ability to export phosphates. However, its resolution has swiftly yielded a profit of Rs. 143 million in just a span of two weeks.

Furthermore, the BCC company experienced a period of dormancy before reactivating its operations using refurbished machinery. Consequently, BCC has managed to operate in a manner that doesn’t burden the government’s finances. Impressively, the BCC company alone has contributed around Rs. 25 million to the national treasury when required.

Additionally, the nation boasts the potential to accrue between USD 400 and 500 million through the various institutions aligned with the Ministry of Primary Industries. It’s important to acknowledge that these endeavours encounter diverse hindrances and challenges along the way. Nonetheless, in order for our country to thrive without the weight of debt, a collective effort is imperative. (NewsWire)

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The Central Bank of Sri Lanka has made key recommendations to the Gem and Jewellery Sector on Anti-Money Laundering and Countering the Financing of Terrorism compliance obligations.

The recommendations were made by the Financial Intelligence Unit (FIU) of the Central Bank during an awareness program held for the gem and jewellery sector on July 04, 2023. 

The sector regulators are requesting the companies engaged in the gem and jewellery business to seriously consider the following recommendations to improve the level of compliance:

• Conduct Customer Due Diligence (CDD), not just on paper but to identify, assess, monitor, and manage sector clientele and take effective action to mitigate ML/TF risks using a risk-based approach that requires enhanced measures when the risks are higher,
• Carry out CDD with respect to the customers for high-value cash transactions above USD 15,000, identify beneficial ownership, and business relationships, and maintain records of transactions,
• Take additional measures to identify customers who are politically exposed persons (PEPs) and adhere to suitable monitoring, 
• Implement policies, procedures, and internal controls against Money Laundering and Terrorist Financing (ML/TF) risks,
• Implement targeted financial sanctions and freeze assets or take action immediately against persons and entities designated by the United Nations Security Council Resolutions (UNSCRs) 1267 and 1373, or other UNSCRs, and communicate the same to competent authorities; and
• Report suspicious transactions to the FIU, where relevant.

Full statement:

The Financial Intelligence Unit (FIU) of the Central Bank of Sri Lanka organized an awareness program for the gem and jewellery sector on “Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Compliance Obligations and New Developments” on July 04, 2023.

The keynote address was delivered by Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka/Chairman, National Coordinating Committee on AML/CFT, and Mrs. J M Thilaka Jayasundara, Secretary to the Ministry of Industries, Mr. Viraj De Silva, Chairman of the National Gem and Jewellery Authority (NGJA), Mr. Ajward Deen, President of Sri Lanka Gem & Jewellery Association (SLGJA) and Mr. U G Chandrasena, President, Lanka Gem Dealers and Miners Association also graced the occasion. The event was participated by over 100 participants from the industry.

The industry of gems and jewellery, and precious metals and stones is a key contributor to the Sri Lankan economy. Sri Lanka is the ninth largest exporter of precious stones to the global market and one of the five most important gem-bearing nations of the world. Sri Lanka is also one of the world’s steadiest suppliers of top-quality gemstones. However, Sri Lanka’s export contribution to the economy is yet to match the other global stakeholders such as Thailand, which is an international trading hub for gem and jewellery and generates around US$ 12 billion in export revenue, and Hong Kong, which notches US$ 30 billion. 

As per the Central Bank Annual Report 2022, Sri Lanka earned US$ 450 million as export income from gems, diamonds, and jewellery during 2022 while the annual average for the past 5 years was US$ 298 million.

While addressing the gathering, Dr. Weerasinghe stressed the significant contribution of the gem and jewellery sector to the Sri Lankan economy. He emphasized that the sector’s successful adherence to the AML/CFT obligations would effectively mitigate Money Laundering and Terrorist Financing (ML/TF) risks. Furthermore, it would ensure compliance with international recommendations, governance standards, and anti-corruption framework. Dr. Weerasinghe emphasized that these efforts would reinforce the AML/CFT framework of the country. He extended an invitation to sector stakeholders, urging them to collaborate closely with the FIU and the NGJA in this national endeavour.

The Secretary to the Ministry of Industries, Mrs. Jayasundara, in her address, provided detailed insights on the collaborative efforts between the FIU and the NGJA to enhance the AML/CFT regime within the gem and jewellery sector. She further elaborated on the specific areas that require focused attention before the upcoming Mutual Evaluation in 2025. Further, she emphasized the importance of compliance in order to gain recognition in the international market.

Chairman of the NGJA, Mr. De Silva, during his speech, acknowledged Sri Lanka’s strategic geographical position on historic trade routes, which has facilitated the exchange of precious gemstones throughout our history. Furthermore, he urged gem and jewellery dealers to uphold their responsibilities by complying with AML/CFT regulations. He specifically emphasized the importance of registering with the FIU as a means of fulfilling these regulatory obligations.

The technical session was conducted by Dr. Ayesh Ariyasinghe, Additional Director of the FIU. During his presentation, Dr. Ariyasinghe explained that gem and jewellery dealers are considered Designated Non-Financial Businesses and Professions (DNFBPs) under the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA). He further highlighted that the ML/TF risk assessment conducted for the country in 2021/22 confirmed the gem and jewellery sector’s medium exposure to ML/TF risks which is a combination of medium threat level, and medium level vulnerability of the sector. Dr. Ariyasinghe also emphasized that the sector’s risk level has decreased from medium-high in 2014 to medium, primarily due to the measures implemented by the FIU since 2018 to address AML/CFT supervision for the registered gem and jewellery dealers.

He emphasized the importance of adhering to the AML/CFT obligations outlined in the FTRA, with a specific focus on promptly reporting suspicious transaction reports. He also encouraged the sector to ensure proper Customer Due Diligence (CDD) is carried out for cash transactions on or above a value of USD 15,000. The stakeholders were informed about the importance of adequately preparing for the upcoming Mutual Evaluation of Sri Lanka, scheduled to take place in March 2025.

Concluding the session, Mrs. Mohotty, Director of the FIU underscored the significance of adhering to AML/CFT obligations within the gem and jewellery sector and highlighted how it would contribute to enhancing Sri Lanka’s AML/CFT standards during the next Mutual Evaluation. 

Furthermore, a productive discussion took place with the active involvement of all session participants, including the guest speakers, resource persons, FIU officials, and the audience. (NewsWire)

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