Gemming right in state lands are owned by the government. Therefore the right for gemming in the state lands should be handed over by NGJA to the general public to carry out gemming operations Licenses to prospect for gems are not normally issued unlike in the case of other minerals, and the right to gemming on a defined area of land or stream reservation is sold by tender or auction, a reserve price being fixed beforehand. Gemming rights are not normally leased out on a royalty and / or rent basis unlike in the case of non-gem minerals. The legal provisions for gem auctions were clearly given in the act no. 50 of 1993; National Gem and Jewellery Act.
According to National Gem and Jewellery Authority Act No. 50 of 1993, land auctioning for gem mining and special gem mining projects have been conducted after obtaining environmental clearances from Central Environmental Authority. These land auctions and special mining projects are carried out in streams, rivers and other state lands such as lands controlled under divisional secretaries, Land Reclamation Commission (LRC), Land Commissioner Department, Pradeshiya Sabha, Road Development Authority ect... The gems found from the project will be taken in to the custody of NGJA and NGJA will be auctioned them by public auctions.