How a Gold regulatory authority could spark Sri Lanka's next economic revolution

This proposition arrives at a critical juncture in the global economy, marked by persistent inflation, geopolitical fragmentation, and supply chain vulnerabilities exacerbated by regional conflicts and climate-related disasters

- By: PANDUKA KEERTHINANDA-ATTORNEY-AT-LAW

Amidst the complex challenges of economic stabilisation, a bold and transformative policy proposition is gaining traction among industry leaders and economists: the establishment of a dedicated Gold Regulatory Authority (GRA) coupled with strategic support for the gem and jewellery sector. Proponents argue this is not merely a sectoral tweak, but a visionary strategy to position Sri Lanka as a structured, productive, and transparent hub for precious metals and stones a potential "duty-free speculative market" for South Asia.

The core argument is one of capturing value. Sri Lanka, blessed with world-renowned gemstones and a historically sophisticated jewellery craftsmanship, nonetheless sees a significant portion of its potential export revenue lost to informality, smuggling, and an opaque value chain. A GRA, modelled on successful frameworks in countries like Dubai or Singapore, would aim to formalize, standardize, and monetize this latent wealth.

The proposed authority would be tasked with multiple critical functions:

* Assaying & Hallmarking:

Implementing mandatory, internationally recognised standards for gold purity, building trust in 'Sri Lanka Gold' as a brand.

* Centralised Trading & Vaulting:

Creating secure exchange mechanisms and storage facilities, attracting institutional investors and international traders.

*Combating Illicit Flows: