A research analysis suggests artificial intelligence could transform Sri Lanka's gem sector by improving certification, supply chain transparency, and market access, potentially helping the country close the gap between its current US$300 million annual exports and the government's US$1 billion target.
Sri Lanka's gemstone industry, renowned for producing sapphires and rubies for over 2,500 years, faces an opportunity to modernise through artificial intelligence, according to research by Kavindu Karunarathne from York St John University. Despite the global reputation of Ceylon Blue Sapphires, the sector has underperformed relative to its potential, with annual export revenues remaining around US$300 million against the government's aspirational US$1 billion target.
The analysis identifies outdated practices as a key constraint. The industry's dependence on informal trading networks, manual grading methods, and reputation-based systems has limited revenue growth and competitiveness. Karunarathne proposes that AI-powered solutions could modernise gemstone grading by combining machine learning with scientific analysis such as spectroscopy to identify stone characteristics and verify origins more accurately. A national database of spectral and trace-element information could strengthen origin certification and enhance the value of the Ceylon brand, potentially administered by the National Gem and Jewellery Authority.
Beyond certification, the research highlights broader applications. Blockchain technology combined with AI could improve traceability from mining to international markets, building buyer confidence in ethical sourcing. Mobile applications could provide small-scale miners with valuations for rough stones, reducing their dependence on intermediaries. AI-assisted geological exploration and digital marketing tools could also expand market reach for exporters.
However, the analysis acknowledges significant obstacles, including limited technology access among small operators and the absence of a comprehensive gemstone database. The research recommends coordinated action among the National Gem and Jewellery Authority, research institutions, universities, and industry stakeholders to develop infrastructure and implement AI solutions.
