Sri Lanka, May 3 -- Sri Lanka's gem and jewellery industry could face severe economic fallout if the United States moves ahead with the proposed reciprocal tariff, the Sri Lanka Gem and Jewellery Association (SLGJA) cautioned.

It called for urgent government intervention to protect one of the country's most vital export sectors.

The SLGJA said the planned U.S. measure would "significantly disrupt Sri Lanka's gem and jewellery sector," which supports the livelihoods of over 600,000 people, including miners, cutters, exporters and designers. The United States currently receives about 10 percent of gemstones originating from Sri Lanka, either directly or via third countries such as Thailand, Hong Kong, Dubai and Switzerland.

"Increased d...