Sri Lanka plans to double cinnamon export revenue
The Morning: The Cinnamon Development Department unveiled plans to increase Sri Lanka’s annual income from cinnamon exports to $ 500 million, doubling the current revenue of $ 250 million.
Director General Janaka Lindara highlighted that Sri Lanka produces approximately 25,000 MT of cinnamon annually, exporting around 19,000 MT. Cinnamon is a key export crop for the nation, traditionally cultivated in areas like Galle, Matara, and Hambantota.
To meet the new targets, the department plans to expand cinnamon cultivation to regions such as Kurunegala, Puttalam, and Mahaweli zones. These efforts aim to boost production and diversify the geographical base of cultivation, according to Lindara.
Furthermore, he added that a significant milestone in this initiative is the signing of a memorandum of understanding (MoU) with China, paving the way for cinnamon exports to begin in January 2025.
Additionally, the department plans to strengthen its presence in the European Union and other international markets.
While the majority of Sri Lanka’s cinnamon is currently exported as raw material, the department is emphasising the production of value-added products to maximize foreign exchange earnings.
Efforts are underway to support small and medium-scale cinnamon entrepreneurs with resources and incentives to encourage this shift, the department mentioned.
OSL take:
Sri Lanka’s exports sector is on a continuing growth path and has become a key revenue generator of the country. Local authorities as well as the local exports sector businesses are focused on further expanding and diversifying the country’s export product portfolio. The many trade agreements as well as the trade concessions enjoyed by the country with other foreign countries and the move by Sri Lanka to further strengthen and expand trade ties to include more foreign countries all serve to boost Sri Lanka’s exports sector. The overall expansion in the exports sector has opened a host of new business/investment opportunities for foreign businesses/investors on the lookout for lucrative ventures in the region, especially in Sri Lanka. It is in such a backdrop that Sri Lankan exporters are looking at further expanding the country’s cinnamon exports to the global market. Sri Lankan cinnamon has been recognized as being of high quality, resulting in an increase in demand for local cinnamon and related products in the foreign markets. It indicates the growth and business potential in Sri Lanka’s cinnamon cultivation and production of cinnamon-based products for the export market. Foreign businesses/investors could therefore confidently explore the expanding opportunities in Sri Lanka’s cinnamon industry while also looking at expanding operations through local collaborations.
Article Code : | VBS/AT/20250103/Z_1 |