Artificial intelligence (AI) could play a key role in transforming Sri Lanka’s centuries-old gem industry by improving gemstone certification, strengthening supply chain transparency, and expanding access to international markets, according to a research analysis by Kavindu Karunarathne, Lecturer and Research Assistant at York St John University.

Sri Lanka has been producing sapphires, rubies, and other precious gemstones for more than 2,500 years, with the Ceylon Blue Sapphire holding a strong reputation in global markets. However, despite this heritage, the country’s gem and jewellery sector has struggled to achieve its export potential, with annual earnings remaining around US$300 million in recent years compared to the government’s US$1 billion export target.

The analysis points out that the industry’s reliance on informal networks, manual grading methods, and reputation-based trading systems has contributed to challenges in improving revenue and global competitiveness.

According to Karunarathne, AI-based technologies could help address these issues by improving the accuracy and consistency of gemstone grading. Machine learning systems, combined with scientific analysis such as spectroscopy, could help identify gemstone characteristics and verify origins more efficiently.

A dedicated database containing the spectral and trace-element information of Sri Lankan gemstones could allow local laboratories, together with the National Gem and Jewellery Authority (NGJA), to provide more reliable origin certification and strengthen the value of the “Ceylon” gemstone brand.

The analysis also highlights the potential of combining AI with blockchain technology to improve gemstone traceability. Such systems could help track stones from mining locations to international markets, providing buyers with greater confidence regarding origin, ethical sourcing, and authenticity.

AI-based tools could also support small-scale miners by providing estimated valuations for rough stones through mobile applications, helping them make better-informed decisions and reduce dependence on intermediaries.

The use of AI in geological exploration could further assist the industry by analysing satellite images, geological data, and historical mining records to identify potential gemstone deposits while reducing unnecessary environmental damage.

On the marketing side, AI-powered visual search tools, multilingual customer support systems, and digital marketing solutions could help small and medium-scale exporters reach international buyers more effectively.

However, the analysis notes that several challenges must be addressed, including limited access to technology among small operators and the lack of a comprehensive gemstone data platform in Sri Lanka.

It recommends a coordinated effort involving the NGJA, the Gem and Jewellery Research and Training Institute, universities, and industry stakeholders to develop a national gemstone database and introduce AI-assisted solutions.

The report concludes that combining Sri Lanka’s long-standing gem expertise with modern AI technology could help the country strengthen its position in the global gemstone market and close the gap between its reputation and export earnings.