In the year 1993 Sri Lanka Parliament enacted a new act to establish the National Gem & Jewellery Authority for the development, regulation and promotion of the Gem Industry and the Jewellery Industry; To provide for the establishment of institutions to promote such development, for the repeal the State Gem Corporation Act, No 13 of 1971; And for matters connected therewith or incidental thereto.

Whereas the regulation of mining for gems and the gem industry and the development of the gem industry and the Jewellery industry is expedient in the public interest, by the establishment of an Authority for that purpose. One other main feature of the NGJA is that jewellery industry too, was taken under the same umbrella for the purpose of promotion and development of the sector. The scope of primary activities vested in the National Gem and Jewellery Authority are below listed for referential convenience.

From the section 14 of the Act No 50 of 1993 the powers and functions to carry out its duties has delegated to NGJA. Following are the main functions presently carried out by the National Gem & Jewellery Authority:                                                     

  1. The promotion and development of the Gem & Jewellery Industry.

  2. The initiation and implementation of Schemes for the promotion and development of the gem industry and the jewellery industry.

  3. The exploitation of the market for gems, whether in or out side Sri Lanka.   

  4. To promote and sponsor technical training of personnel on every aspect relating to the gem industry and the Jewellery industry and especially on heat treatment and gem cutting, with a view to developing such industries.

  5. To take such steps those are necessary to generate confidence in the gem industry and the Jewellery industry among prospective buyers.

  6. To prevent un- lawful gemming and unlawful removal of gems from Sri Lanka.

  7. To provide technical and other advice and the infrastructure support necessary for the marketing of gems and Jewellery.

  8. To establish offices for certification of gems and assaying of precious metals.

  9. To regulate and control the terms and conditions of employment of persons who work in the gem industry and in particular, the safety measures to be taken to protect such persons from danger to life and limb. 

The National Gem & Jewellery Authority is in the business of providing, facilitating services for the promotion of sustainable development of the Gem & Jewellery industry in Sri Lanka. It facilitates identification of gem deposits and gem mining, Jewellery trading, value enhancement, value addition and valuation of gems. It also enables research, laboratory services, assaying, hallmarking of Jewellery, exporting and marketing of such products local and international markets. As a means of promoting its business, the Authority encourages, facilitates and endeavors to make the transfer of knowledge to all parties and stakeholders engaged or interested in the Gem & Jewellery Industry.

The NGJA’s Business model has founded on the concept of Self Standing, Self-financing and Sustaining Government Authority. Currently the main source of its income is from service fee on exports of Gem & Jewellery and Trade licenses on Gem & Jewellery. The NGJA anticipates to increase the Value of Exports to USD One Billion in 2016 via promotion and development of exports of Gemstones & Jewellery and their infrastructure to yield a greater output.