Abstract:
This study investigates the key factors influencing the export performance of gem
exporters in Sri Lanka, with a specific focus on the Ratnapura District, renowned as
the “City of Gems.” Despite the global reputation of Sri Lankan gems, recent trends
indicate a decline in gem export performance, highlighting the need to examine
contributing factors. The research addresses this gap by analyzing both internal
factors, such as firm resources and export marketing strategies, and external factors,
including exchange rates, competition, national regulations, and government support.
The primary objective of the study was to assess the relationship between these
factors and export performance. A quantitative research methodology was employed,
using a structured questionnaire distributed to 100 gem exporters in the Ratnapura
District. Secondary data were obtained from institutional sources, including the
National Gem and Jewellery Authority (NGJA) and the Export Development Board
(EDB). The collected data were analyzed using SPSS software, and correlation
analysis was applied to test six hypotheses. Findings revealed that firm resources,
export marketing strategies, and government support have a statistically significant
positive effect on gem export performance. Conversely, exchange rates, competition,
and national regulations were found to negatively affect export performance. These
results underscore the importance of strategic planning, resource optimization, and
proactive government policies to enhance international competitiveness. The
implications of this study are multifaceted. Policymakers can use the findings to
design targeted interventions aimed at reducing regulatory burdens and enhancing
institutional support. For gem exporters, the study emphasizes the importance of
investing in resource development and adopting dynamic marketing strategies to
remain competitive in global markets. Furthermore, this research contributes to
academic literature by providing empirical evidence on the determinants of export
performance within the Sri Lankan gem industry, an area with limited prior research.
In conclusion, improving export performance requires a synergistic approach that
integrates both internal capabilities and external support systems. This study offers
valuable insights for stakeholders seeking to strengthen Sri Lanka’s position in the
global gem trade.
