The Sri Lankan Cabinet has decided to abolished the 15 percent Value Added Tax (VAT) on the imports and trading of rough, cut and polished gemstones, diamonds and precious metals with immediate effect, the official Daily News reported Saturday.

"We have taken a bold step forward in the right direction to make Sri Lanka the hub in the gem Industry," Advanced Technology and National Enterprise Development Minister Rohitha Bogollagama was quoted by the paper as saying.

He said that the gem and jewelry industry is now an open, progressive and value added sector, which is expected to surpass tea and apparel sector exports in the future with more value addition and creativity.

The removal of the 15 percent VAT would fetch more foreign exchange to the country, generate more employment and also strengthen the relative industries, he added.

Source: Xinhua