Core Viewpoint - Sri Lanka has decided to suspend the issuance of mining licenses for heavy minerals until a new national mineral policy is approved by the Cabinet and submitted to Parliament for review [1] Group 1: Policy Changes - The government will pause all mining licenses for heavy minerals such as titanium, rutile, zircon, and garnet until the new policy is officially introduced [1] - The new national mineral policy aims to maximize the country's mineral resource benefits and is expected to be published in a government gazette by the end of March [1] Group 2: Regulatory Measures - The government is advancing the digitalization of the entire mining licensing process to enhance transparency and prevent arbitrary decision-making [1] - A "rapid response team" has been approved by the President to strengthen regulation and enforcement against illegal mining activities [2]

Core Viewpoint - The National Gem and Jewelry Authority (NGJA) of Sri Lanka has announced significant reforms to the taxation system for gemstone imports, which will substantially reduce the tax burden on importers and potentially impact the gemstone export market negatively [1] Tax Reform Details - Starting from January 1, 2024, gemstone importers will be required to pay an 18% VAT and a 2.5% SSCL based on the actual value of the gemstone packages, leading to a significant decrease in import volumes for 2024 and 2025 compared to 2023 [1] - To address the heavy tax burden, a simplified and more favorable tax calculation system has been introduced, where the value of precious gemstones such as rubies, sapphires, and emeralds is estimated at $900 per kilogram for tax purposes [1] - For semi-precious stones like amethyst, topaz, and garnet, the estimated value is set at $50 per kilogram, resulting in a VAT and SSCL payment of $10.25, approximately 3,200 Sri Lankan Rupees [1] Industry Development Goals - The reform aims to encourage young entrepreneurs to enter the gemstone industry, particularly in areas such as importation, cutting, polishing, and re-exporting, to further develop Sri Lanka's gemstone and jewelry sector [1]