Sri Lanka cinnamon export earnings are being targeted to reach $300 million annually as the Government seeks to capitalise on rising global demand and strengthen the country’s position as the world’s leading supplier of true cinnamon.
Sri Lanka cinnamon export earnings expected to grow through higher productivity and value addition
The target was highlighted during discussions between Agriculture, Livestock, Lands and Irrigation Minister K.D. Lalkantha and officials of the Cinnamon Development Department, where future development plans for the sector were reviewed alongside strategies to enhance production, market access and export performance.
During the meeting held at the Ministry of Agriculture, officials presented a comprehensive roadmap outlining the future direction of the industry. The discussions focused on improving productivity, expanding international market reach and increasing value addition to ensure sustainable growth in export revenue.
Sri Lanka currently accounts for approximately 80% of global true cinnamon production, reinforcing its position as the dominant supplier of high-quality cinnamon in international markets. The country presently generates around $260 million in annual export revenue from the sector, making cinnamon one of Sri Lanka’s most important agricultural export commodities.
Authorities believe there is significant room for growth, particularly as consumer demand for natural spices and premium food ingredients continues to expand globally. Achieving the targeted increase in Sri Lanka cinnamon export earnings would further strengthen the sector’s contribution to foreign exchange earnings and rural livelihoods.
Officials also highlighted opportunities to improve productivity through modern cultivation practices. According to the Cinnamon Development Department, an acre of cinnamon currently yields around 250 kilograms. However, with better cultivation methods, improved farm management and enhanced technical support, yields could potentially increase to around 400 kilograms per acre.
Higher productivity is expected to play a critical role in supporting future export growth while helping growers improve profitability and competitiveness.
Despite its strong global position, the cinnamon industry Sri Lanka continues to face several structural challenges. During the discussions, officials identified competition from cassia cinnamon as a major concern, particularly in international markets where lower-priced alternatives often compete with premium Ceylon cinnamon products.
Other challenges include a continued reliance on lower-value export markets, market concentration among a relatively small number of exporters, insufficient investment in research and development, and limited international branding efforts.
Industry stakeholders noted that addressing these issues will be essential if Sri Lanka is to fully realise its export potential and strengthen its presence in high-value global markets.
To overcome these challenges, officials emphasised the importance of diversifying export destinations and deepening market penetration in existing markets. Expanding access to new regions could help reduce dependence on a limited number of buyers while creating opportunities for premium-priced products.
The promotion of value-added cinnamon products was also identified as a key growth strategy. By increasing exports of processed and branded cinnamon products rather than relying primarily on raw exports, the country could capture greater value within the supply chain and enhance overall export earnings.
Improving returns to growers was another major priority discussed during the meeting. Ensuring that farmers receive better income from their harvests is expected to encourage greater investment in cultivation and support long-term industry sustainability.
Officials also reviewed progress on the Cinnamon Cultural Promotion Centre currently under construction, which is expected to contribute to awareness, industry development and market promotion initiatives. In addition, discussions explored the potential for expanding cultivation through intercropping practices, allowing farmers to maximise land use while increasing overall production.
With global demand continuing to grow and Sri Lanka maintaining a dominant position in the true cinnamon market, policymakers believe that strategic investments, productivity improvements and stronger branding efforts can significantly boost Ceylon cinnamon exports in the coming years.
The sector’s roadmap signals a clear ambition to transform the industry into a higher-value export contributor while supporting growers, strengthening competitiveness and increasing Sri Lanka cinnamon export earnings to the targeted $300 million level.