Gem Float

The Ceylinco group got another foot into the local gem and jewellery industry by floating a new company to finance gem trading and mining. The Ceylinco group got another foot into the local gem and jewellery industry by floating a new company to finance gem trading and mining. “We will not be competing with the existing players in the industry. We will support them,” said Chairman, Ceylinco Group, Lalith Kotelawala, at the launch of the company on Tuesday.

The new company, Ceylinco Gem Corp International Ltd, will mainly focus on providing credit for the local gem trading and mining industry.

“The company will be acting as a financial institution, primarily advancing money to gem merchants against the security of gem stones,” said Hiran de Silva, Deputy Chairman, Ceylinco Consolidated

The company has a capital of up to Rs 1 bn to finance gem-trading activity against the security of gemstones.

At the moment the local gem trade find it difficult to access credit because banks are unwilling to lend using gemstones as collateral.

Last year, the Export Development Board tried to get a loan scheme going with the l