Colombo, Sri Lanka – The Jewel of the Indian Ocean

Nestled on the western coast of Sri Lanka, Colombo has long been a cornerstone of the global gemstone trade. Known as the “Gem Island,” Sri Lanka has been famous for its gemstone deposits for over 2,000 years. As the nation’s commercial capital, Colombo has served as the primary gateway for the island’s gemstone industry, linking Sri Lanka’s rich mines with international markets.

Renowned for its sapphires, rubies, tourmalines, and cat’s eye chrysoberyl, Sri Lanka’s gemstones have been prized by royalty, nobility, and collectors for centuries. Whether sought after by ancient traders or modern jewelry connoisseurs, Colombo’s position as a gemstone hub remains as brilliant as the jewels it exports.

Early History: Gemstones in Sri Lanka

Sri Lanka’s connection to gemstones stretches back to antiquity. The island was one of the earliest sources of high-quality sapphires, and historical records from the Romans and Greeks mention the island’s coveted stones. By the 3rd century BCE, Sri Lankan gems were already highly sought after in Mediterranean markets.

The island’s strategic location in the Indian Ocean made it an essential stop for traders navigating between Europe, India, and Southeast Asia. Whether through Arab, Persian, or Chinese merchants, Sri Lanka’s gemstones found their way into global commerce, fueling the reputation of the island as a land of precious stones.

One of Sri Lanka’s key advantages was its rich alluvial deposits, where gems were carried down from the mountains and deposited in rivers. Unlike many other mining regions in the world, Sri Lanka’s gemstones could be extracted with relatively minimal effort using traditional mining methods.

Sri Lanka’s Gem Mining: A World of Riches Below the Surface

Unlike large-scale industrial mining operations elsewhere, Sri Lanka’s gemstone industry has been defined by small-scale, family-run enterprises that have passed down their skills through generations.

• Primary Mining Regions:

• Ratnapura (meaning "City of Gems") – The heart of Sri Lanka’s gemstone mining industry.

• Elahera – Another major gemstone-producing area.

• Balangoda, Kataragama, and Bibile – Additional sources of high-quality gemstones.

• Famous Gemstones from Sri Lanka:

• Ceylon Sapphire – The most prized Sri Lankan gemstone, known for its deep yet vivid blue hues.

• Padparadscha Sapphire – A rare and highly valuable pink-orange sapphire unique to Sri Lanka.

• Cat’s Eye Chrysoberyl – A chatoyant gem famous for its silky glow.

• Rubies, Spinels, and Tourmalines – Additional key exports.

Mining in Sri Lanka relies heavily on traditional pit mining, riverbed panning, and alluvial mining, with a strong emphasis on sustainable practices. Miners typically use simple hand tools like shovels, picks, and screens to extract gems rather than destructive mechanized techniques.

The Rise of Colombo as the Gemstone Trade Hub

Although Sri Lanka’s gemstone wealth has been recognized for millennia, Colombo’s rise as the island’s premier trading hub accelerated during the colonial period.

• Portuguese Rule (1505–1658) – European traders became increasingly aware of Sri Lanka’s gemstone wealth, though the Portuguese focused more on cinnamon and spices.

• Dutch Rule (1658–1796) – The Dutch East India Company expanded Colombo’s role in gemstone exports.

• British Rule (1796–1948) – British control led to an organized system for gemstone trade and exports, making Colombo a key gemstone trading port.

By the 19th century, Colombo had become one of the world's most important gem trading centers, with sapphires, rubies, and tourmalines flowing into European, Indian, and Middle Eastern markets.

While Sri Lanka’s mining operations remained decentralized, Colombo became the nerve center for cutting, polishing, and exporting gemstones. Many of Sri Lanka’s traditional family-run gem-cutting workshops are still based in the capital today.

The Golden Age of Colombo’s Gemstone Trade

During the late 19th and early 20th centuries, the demand for Ceylon sapphires skyrocketed, especially in Europe and America.

• Colombo processed over 50% of the world’s sapphires and rubies during this period.

• British and European jewelers increasingly sought Sri Lankan gems due to their unmatched clarity and vibrant colors.

• High-quality Sri Lankan sapphires became associated with luxury and were used in royal and aristocratic jewelry collections.

The cutting techniques perfected in Colombo were second to none, making the city a preferred destination for both raw gemstones and finished jewelry.

Decline and Revival: The Modern-Day Gemstone Trade in Colombo

Following its peak, Colombo’s dominance in the global gemstone trade faced several challenges:

• The rise of synthetic gemstones in the mid-20th century reduced demand for natural gems.

• Changing trade patterns saw increased competition from other cutting hubs like Jaipur (India) and Chanthaburi (Thailand).

• Geopolitical and economic fluctuations affected the gemstone export industry.

Despite these setbacks, Colombo has successfully reinvented itself in the modern era.

• Advanced Cutting Technologies – The combination of traditional hand-cutting skills with modern precision tools has enhanced the quality of Sri Lankan gems.

• Sustainability and Ethical Mining – With growing consumer demand for ethically sourced gemstones, Sri Lanka has emphasized fair trade and environmentally friendly mining practices.

• Revival of Ceylon Sapphire Market – In recent years, high-end jewelers have once again turned to Sri Lanka for natural, untreated sapphires.

Today, Colombo remains a vibrant hub for gemstone trading. The Sri Lanka Gem & Jewelry Exchange (SLGJE), located in Colombo, is the country’s main commercial center for gemstone exports, attracting buyers from around the world.

Key Takeaways and Fascinating Facts

• Sri Lanka has been a leading source of precious gemstones for over 2,000 years.

• Colombo became the island’s primary gemstone trading hub during the colonial era, connecting Sri Lankan mines with global markets.

• The Ceylon Sapphire is one of the most valuable sapphires in the world, prized for its deep, rich blue color.

• Colombo processed over 50% of the world’s sapphires and rubies at its peak in the late 19th and early 20th centuries.

• Sri Lanka’s gemstone mining industry remains predominantly small-scale and family-run, emphasizing ethical sourcing.

• Modern Colombo remains a key gemstone trade hub, with the Sri Lanka Gem & Jewelry Exchange acting as the focal point of the industry.

Conclusion

Colombo’s journey from an ancient trading post to a modern gemstone capital is a testament to Sri Lanka’s rich mineral heritage and craftsmanship. Though its prominence in the global market has fluctuated, the city remains a major force in the world of sapphires, rubies, and colored gemstones.

With a strong commitment to ethical mining, sustainability, and technological advancements, Colombo continues to shine as a jewel of the Indian Ocean, upholding its legacy as one of the most important gemstone capitals in history.