How gold is priced in Sri Lanka
In Sri Lanka gold is quoted per pawn (sovereign) of 8 grams for 22K and 24K gold, and per gram at the jewellery counter. The figures here are the international spot price converted to rupees, before VAT and making charges; Colombo market prices are usually higher.
Where the local price comes from
The reference price most people follow is the one quoted by traders in Colombo's Pettah gold market around Sea Street, reported daily in the press for 22K and 24K per pawn. Gold imports are limited, and a large share of local supply comes from banks' auctions of unredeemed pawned jewellery, so local prices can sit above converted world prices.
VAT
Since 1 January 2024 jewellery sold in Sri Lanka, and gold imported after that date, has carried the standard 18% VAT, after an earlier exemption was removed; the VAT exemption list in force since then does not include jewellery or precious metals. Jewellers say they cannot reclaim VAT on gold they buy from authorised importers, and the trade has been lobbying in 2026 for the tax to be revised.
Pawning and buying tips
Pawning gold jewellery at banks is a common way to borrow in Sri Lanka, and banks announce how much they lend per pawn of 22K gold. Jewellery is mostly 22K (916). There is no compulsory hallmarking, but the National Gem and Jewellery Authority runs an assay service; ask for karat, weight and making charge to be itemised on your bill.
Tax and duty information last reviewed October 2026. Rules change — confirm with your dealer or tax authority before a large purchase.