National Gem and Jewellery Authority of Sri Lanka (NGJA) enacted under the act No. 50 1993 is the only governmental institution empowered to regulate, develop and promote gem and jewellery industry of the country. NGJA is vested with the power to issue gem mining licences under section 15 of the above act, according to the prevailing policy of the government, mining licences both traditional and mechanized shall not be issued to foreign companies/ companies with foreign partnerships /companies with foreign investment / foreign individuals.

Further the exploration licences are issued by the Geological Survey and Mines Bureau (GSMB) of Sri Lanka only for exploration of other minerals other than gem minerals.Gem mining is not permitted under an exploration licence issued by GSMB. Such illegal activities are punishable offences and NGJA shall confiscate all such property under the power vested with the Authority and legally prosecute such violators under the legal system of Sri Lanka.