The holders of Exotic Sri Lanka, the resplendent home of the famous Ceylon Sapphire, will host the world’s most prestigious gemstone gathering, the 16th bi-annual Congress of the International Coloured Gemstone Association in Colombo recently which will be held at the Cinnamon Grand Hotel.

Sapphires have emerged as the bestselling gemstone variety in the 21st century and numerous factors have converged to give it its lead position in the market. Increased global demand for sapphires not just for adornment but for its investment potential; unprecedented demand in China, the fastest growing consumer market; sapphire’s popularity as a choice for engagement rings plus the fact that celebrated designers and trend-setting jewellery houses are using sapphires in a range of sizes and colours in their collections. Phenomenal growth in consumer demand in China has been a crucial driver in current demand. Consumers here have learnt the value factors of sapphires and demand is moving rapidly, international dealers confirm.

The United States too is showing strong growth while Europe is reportedly quieter, but the main jewellery houses continue to use sapphires in their designs while edgy contemporary designers enjoy using the range of sapphire colours in a multitude of sizes in their designs. The Sapphire engagement ring market has increased substantially, spurred by famous engagement rings such as that of the Duchess of Cambridge and actress Penelope Cruz. A recent reporton CNN Money pointed to the fact that sapphires head the list of new choices for engagement rings. As consumer demand grows, sapphires that were sold over the years are emerging at international auctions. An amazing example is the recent Christie’sGeneva auction, where a spectacular necklace with acushion-shaped 392.52 carat Ceylon blue sapphireknown as the Blue Belle of Asia sold for US$17.29 million, a record price for a sapphire at any auction.The sapphire was reportedly found in a rice field in Pelmadulla, close to Ratnapura in Ceylon (Sri Lanka) in 1926.President of the International Colored Gemstone Association (ICA), Benjamin Hackman agrees that it is the era of sapphires, the most popular gemstone in current times. Best selling are blue sapphires 2 to 3 carats and up to about 20 carats, confirms Mr Hackman who is partner in Inter color USA in New York.

How Sri Lanka became the centre of the sapphire business

Sri Lanka’s famed sapphire resource together with advances in heat treatment technology and the addition of sapphires from other sources particularly Africa, to the range on offer, have helped make the country the centre of the sapphire business.

Mr Hackman says Bangkok used to be the centre for sapphire, now its Colombo. He adds:“Sri Lankan dealers are very professional and easy to deal with. They have a lot of knowledge and expertise and have done a tremendous job to convince people to come and buy here.” Sri Lanka’s sapphires presented an opportunity to deal in natural unheated material and the quantity and quality needed to create a nice niche business was here, they say.

Prospects for the future

International sapphire dealers anticipate that sapphire demand will continue to grow and they expect China to lead the way. Nevertheless there is concern that the strong demand and limited availability is pushing prices up too quickly. Mr Hackman says prices have gone up tremendously and selling is becoming difficult as some buyers are resisting price increases and this in turn is eliminating some potential clients. Demand too is narrowing and most buyers want certificates, a process that tends to be complicated and time consuming.

For more information please email info@icacongress.com or contact Ruani Wickramasekera, Project Coordinator at Sri Lanka Gem & Jewellery Association on 071-0535-424. The website is www.congress.gemstone.org