Cinnamon industry generates US$185 million in first eight months of 2026
Ada Derana: Sri Lanka’s cinnamon industry has generated approximately US$185 million in revenue, equivalent to around Rs. 60 billion, during the first eight months of this year, according to the Ministry of Agriculture, Livestock, Land and Irrigation.
The Agriculture Ministry stated that it expects the industry to achieve a revenue target of Rs. 100 billion by the end of the year.
To support this target, the Ministry of Agriculture has allocated Rs. 365 million to the Cinnamon Development Department.
The funds have been allocated to expand cinnamon cultivation, establish value-added cinnamon-based industries, facilitate internationally recognised quality certifications for the sector, and promote entrepreneurship within the industry.
The planned initiatives also include establishing 2,500 acres of new cinnamon cultivation in non-traditional growing areas.
The Ministry expects these measures to strengthen the country’s cinnamon industry, expand its production capacity and enhance its competitiveness in international markets.
OSL take:
Sri Lanka’s expanding cinnamon industry is creating fresh business and investment opportunities for foreign companies/investors as the country seeks to increase production, develop value-added products and strengthen its position in international spice markets. The industry generated approximately US$185 million in revenue during the first eight months of this year, with the Government targeting Rs. 100 billion in annual revenue by the end of 2026. Plans to expand cultivation, improve quality standards and encourage entrepreneurship are expected to create opportunities across the cinnamon value chain. For foreign businesses/investors, potential opportunities extend beyond the export of raw cinnamon to value-added processing, manufacturing, packaging and international distribution. Investments in cinnamon-based essential oils, extracts, pharmaceuticals, cosmetics, nutraceuticals, food ingredients and wellness products could help unlock greater export earnings. There is also scope for foreign technology providers and processing companies to introduce modern extraction techniques, automated processing equipment, quality-control systems and internationally recognised certification processes. The Sri Lankan Government’s plans to establish 2,500 acres of new cinnamon cultivation in non-traditional growing areas could create opportunities for partnerships with local growers, agricultural technology providers and companies specialising in sustainable plantation management. Foreign investors could also explore joint ventures with Sri Lankan producers to develop branded Ceylon Cinnamon products for premium international markets, particularly in Europe, North America and Asia. With growing international interest in natural ingredients, health-oriented products and sustainably sourced agricultural commodities, Sri Lanka’s cinnamon industry offers considerable potential for investment in both primary production and downstream industries. Greater foreign participation, technology transfers and access to international distribution networks could help transform the industry from a traditional spice-export business into a more diversified, higher-value export sector.
| Article Code : | VBS/AT/20261111Z_1 |