Chinese Gem Smuggling Drains Billions from Sri Lanka’s Economy
- CNL Reporter
- August 16, 2025
- News
- Sri Lanka’s Economy
- 0 Comments
Chinese-led gem smuggling operations are causing massive losses to Sri Lanka’s struggling economy, with local businesses in traditional gem hubs such as Ratnapura and Beruwala bearing the brunt, The Financial Post has reported.
According to the report, Chinese nationals have allegedly smuggled gemstones worth around Rs. 30 billion from Sri Lanka, bypassing taxes and legal channels. This illicit trade is estimated to cost the government Rs. 38 billion annually in lost Value Added Tax (VAT) revenue.
Recent incidents include the Colombo High Court seizing over Rs. 201 million from a Chinese businessman tied to a decade-long money laundering network, and Customs intercepting a Chinese man and his daughter attempting to take Moonstones, Star Sapphires, and Emeralds worth Rs. 17 million out of the country.
The article claims Chinese buyers often arrive as tourists, sourcing gems from unregistered intermediaries to evade documentation and taxation, undermining legitimate traders. The unchecked smuggling has tarnished Colombo’s reputation in Western markets, pushing buyers towards alternative hubs like Thailand.
