Recently, there is a popular phrase in the economic community: "The dollar tightening cycle, there are always moths flying", which is used to describe the current economic situation.
Recently, Sri Lanka's bankruptcy was raging, and President Rajapaksa announced his resignation and fled abroad with a box of gemstones.
Sri Lankan people lining up in front of gas stations in the capital; The GUILD team shot ©GUILD
Behind the political change is a devastated economy, with Sri Lanka's gem industry bearing the brunt of the downward trend. Over the past month, the industry has been actively discussing the situation and whether the global gemstone trading center will be locked down.
As an important gemstone distribution center in the world, sri Lanka's future trend also affects the hearts of every practitioner.
The GUILD team arrived in Sri Lanka in July, pictured as President Liu Lihong on the streets of Beruwala
Against this backdrop, the GUILD team chose to travel to Sri Lanka for a month-long visit to the local gem industry. Through interviews with a number of centuries-old local companies, visits to traditional trading and processing centers, etc., we will show you a real Sri Lanka.
A bird's eye view of Sri Lanka; The GUILD team shot ©GUILD
Sri Lanka Introduction
Sri Lanka is known from the Sanskrit word Ratna Dweepa, meaning Jewel Island. As early as 2,000 years ago, sapphires from Sri Lanka were traded to ancient Rome and Greece.
In the early 7th century BC, the Etruscans used Sri Lankan sapphires in jewelry. In the 5th century BC, the Greeks and Romans used Sri Lankan sapphires in jewelry.
The famous Roman naturalist Pliny the Elder recorded the gems of Sri Lanka in the 1st century AD. Sri Lanka is one of the oldest gem-producing countries and continues to produce a wide range of colored gemstones, mainly sapphire, to this day.
Bird's eye view of the Gem Kingdom
Many of Sri Lanka's mines produce a wide range of gemstones; Copyright ©GUILD
Sri Lanka is best known for its sapphires of all colors and, to a lesser extent, rubies.
However, this is not the full strength of the gem kingdom, in fact, Sri Lanka produces a variety of colored gemstones, including but not limited to aquamarine, tourmaline, alexandrite, golden cat's eye, garnet, zircon, spinel, moonstone and so on. It is no exaggeration to say that the southern to central part of the island is littered with gem deposits.
The fiery gem trade in the market of La Trappe; Copyright ©GUILD
Sri Lanka has several centralized gem trading centers, of which Ratnapura is an important market.
For centuries, locals have sold some rough quarried from pits in the area. In bustling street markets, merchants and miners trade rough and loose stones on the streets and in dealer offices, the most common of which is sapphires of all colors.
Figure丨Shaozard mining area distribution map of Sri Lanka; Copyright ©GUILD
Currently, Sri Lanka is the world's leading rough and loose stone manufacturing and trading center for sapphires and other gemstones such as spinel, tsavorite, and even Swat Valley emeralds in Pakistan.
Sri Lanka's famous sapphire mining areas include Ratnapura, Barangoda and Erahra, which are known for producing large-size, top-quality sapphires.
Throughout its long history of mining and cutting sapphires, Sri Lanka has gradually accumulated a wealth of experience and professional craftsmen in the heat treatment and modern cutting of sapphires.
In expanding sapphires from mines in Africa, the similarity of Rough Sapphire from Madagascar and Sri Lanka has greatly boosted the local sapphire market over the past two decades.
The streets of beruvara's China Fort, where all kinds of gemstones are traded at all times; Copyright ©GUILD
Geographical and geological proximity has made Sri Lankan buyers very good at building relationships with independent miners in Africa, and rough has entered the country from Africa in a steady supply, even during the pandemic.
In addition to the sapphires from Madagascar, sapphires from Nigeria and Ethiopia, rubies from Mozambique, and a variety of colored gemstone rough from all over Africa have been flowing into Sri Lanka.
Retailing and processing in the new situation
From the barrier during the epidemic to the gradual dredging of various channels (sea and air) at present, the global flow of Sri Lankan sapphires has been restored to a certain extent. However, under the dual influence of the political situation and export pressures, the retail and processing of Sapphire in Sri Lanka has ushered in a new situation.
Sri Lanka is currently experiencing some of the most difficult days of the past 20 years. On June 14, the Sri Lankan government declared food shortages; On 22 June, Sri Lanka's prime minister declared a complete collapse of the economy and suspended foreign debt service; On June 28, the government announced that the fuel holdings were only enough for the last week, stopping the fuel supply of all private cars, and completely shutting down the state. On July 6, the Prime Minister of Sri Lanka announced: Sri Lanka is in the midst of an economic crisis and the government is bankrupt!
All local construction sites in Sri Lanka have been shut down; Copyright ©GUILD
From July to August, the GUILD team went through the whole process. When the GILD team arrived in Sri Lanka in July, they found that gasoline, diesel and some very basic medicines were also in short supply.
There was a long line in front of the gas station. At the same time, the currency is depreciating wildly, but prices are soaring, and the price of grain alone has soared by 80%. Upon arriving in Sri Lanka, the GUILD team experienced a series of events such as curfews, storms on the presidential palace, and soaring oil prices. Focusing on the gem industry, the impact is not so great, local practitioners are still actively promoting the development of the industry, and the streets on trading days are still rubbing shoulders.
Foreign buyers can attract a lot of attention at the Sri Lankan lottery market; Copyright ©GUILD
The effects of the political unrest may not seem obvious in colored gemstone trading hubs across Sri Lanka, but when the GUILD team arrives on the streets of Beruwala, the trade situation can still be described as a rush.
However, it is difficult to determine whether there is a possibility of receiving foreign currency and surviving the period of domestic inflation. From the perspective of withdrawing funds, under the turmoil, the gem trade that depends on survival needs more cash flow.
The GUILD team visited the local century-old company Colombo Jewellery in July; Copyright ©GUILD
In order to have a more in-depth and detailed understanding of the development of the local colored gemstone industry in Sri Lanka and to analyze the future global sapphire output and cutting trends, the GUILD team visited a number of century-old enterprises and source suppliers in Sri Lanka.
Including Akram Cassim, CEO of Colombo Jewelry, a century-old Sri Lankan company, Armil Sammoon, a board member of The Sri Lanka Sapphire Capital Group, and his father, Naji Sammoo, daughter Savaira Sammoon, a family of three generations of practitioners.
We also interviewed Farhi Mursi, a fourth-generation Sri Lankan sapphire supplier, and visited many local dealer stalls.
From left to right, Savaira Sammoon, Naji Sammoo, Armil Sammoon
In the feedback from local practitioners, there is general confidence in the future production, processing and export of sapphire and other colored treasures in Sri Lanka. Buyers from India, China, Japan and other markets continue to come to Sri Lanka, and it is not uncommon for gold diggers in turmoil to pan for gold in the waves.
As a result, Sri Lanka's local formats are still full of vitality, the major trading centers are endless, and foreign faces can always cause a burst of sales.
Liu Lihong, President of GUILD Gem Lab, took a group photo with Sri Lankan practitioners in July; Copyright ©GUILD
After introduction, we learned that the number of colored gemstones from Africa has not decreased significantly, and the local colored gemstone companies with strength are still actively purchasing and processing.
Many suppliers of raw materials have said that this is a difficult time for Sri Lanka, but the relatively calm colored gemstone industry will not put on the brakes, and all trade and circulation are in a normal state.
Spotlight on Sapphire: Talking to Practitioners
Just a few words can not say the rich harvest of the GUID team's trip to Sri Lanka, and the visit to the "Gem Kingdom" is definitely the most meaningful field trip. Therefore, the GUILD team prepared a live master class "Focus on Sapphire Retail and Rough Cutting - Exploring the Century-old Enterprise of Sri Lanka".
Trading pomp and circumstance on the streets of Beruwala on trading days; Copyright ©GUILD
Liu Lihong, President of GUILD Gem Lab, together with Akram Cassim, CEO of Colombo Jewelry, a century-old company, Armil Sammoon, a member of the board of directors of Sri Lanka Sapphire Capital Group, as well as his father Naji Sammoo, daughter Savaira Sammoon, and farhi Mursi, a fourth-generation Sri Lankan sapphire raw material supplier, gathered in the GILD Master Class Live Room. Meet face-to-face with the retail and processing of sapphires worldwide.
Preemptively book a live broadcast, lock in the 20:00 GUILD Master Class on September 16th, and focus on sapphire with Sri Lankan practitioners. Xiao Ji and many prizes are waiting for everyone in the live broadcast room