Gem trading bank to promote jewellery sector growth

Irangika RANGE

GEMS: The National Gem and Jewellery Authority (NGJA) is exploring possibilities to set up a Gem Trading Bank for the benefit of the gem and jewellery sector.

Enterprise Development and Investment Promotion Ministry Secretary Thosapala Hewage said the legal framework for the establishment of the Bank is formulated under Act No. 51 of 1993.

The appointed board will exercise, perform and discharge all powers and duties and functions conferred or imposed on or assigned to the bank by this Act.

The functions of the bank will be to promote the flow of credit to develop the gem and jewellery industry of Sri Lanka and to provide re-finance facilities for commercial banks lending to the gem and jewellery industry.

It will also provide credit facilities to persons engaged in the gem and jewellery industry.

It would grant loans and other accommodation on securities and priority including gems, jewellery or precious metal and to give credit to persons and companies with or without security for the development of the gem and jewellery industry.

It would open, maintain and manage current deposit savings and other accounts and will also buy, stockpile and sell and enter into other dealings in gems, precious metals and jewellery.

It will subscribe to purchase or underwrite, the issue of stocks, shares, bonds and acceptable instruments of any company engaged in the gem and jewellery industry.

Bid bonds and guarantee in or outside Sri Lanka on behalf of the gem industry and jewellery industry would be issued through the Bank.

NGJA's Deputy Director General, B.P. Withanage said the authority will lend hand to newcomers to increase their contribution in the gem and jewellery industry.

Under this the NGJA will provide an opportunity to follow courses on gem and jewellery to children of gem miners.