Sri Lanka targets new markets for Ceylon Cinnamon exports
The Morning: The Ministry of Plantation and Community Infrastructure has decided to look beyond traditional markets and focus on non-traditional markets such as China and Europe this year in order to expand the export market of Ceylon Cinnamon.
Speaking to The Sunday Morning Business, Ministry of Plantation and Community Infrastructure Secretary B.K. Prabath Chandrakeerthi revealed that expanding the revenue generated from the export of Ceylon Cinnamon was a priority during this year.
The ministry will be looking at new non-traditional markets in order to achieve such an increase in export revenue.
He stated: “We need to increase our export market and therefore China is one of our target markets. We are looking to enter the European market as well. Our main focus is to look beyond traditional markets and focus on non-traditional markets.”
He added that the main market for Ceylon Cinnamon had traditionally been South America.
Chandrakeerthi stated that in order to achieve these goals, it was necessary to focus on building the capacity of farmers. Accordingly, the ministry together with the Industrial Development Board will be organising training workshops for cinnamon farmers during the year.
In 2023, China signed a Memorandum of Understanding (MOU) with Sri Lanka agreeing to sign the Protocol of Phytosanitary Requirements for the Export of Ceylon Cinnamon from Sri Lanka to China.
Thereafter, in 2024, China’s General Administration of Customs, through Announcement No.145 of 2023, established new phytosanitary requirements for the importation of Ceylon Cinnamon from Sri Lanka.
Through the 2025 Budget, President Anura Kumara Dissanayake presented a proposal to expand value addition in traditional exports such as cinnamon.
“The Government will provide technical assistance to farmers in order to improve supply quality and facilitate linkage with value added exporters, including through international joint ventures.
“In order to link to the global value chain, we propose to allocate Rs. 250 million to implement an integrated product development and trade promotion programme of Ceylon Cinnamon and other export crops,” he said.
OSL take:
Sri Lanka’s exports sector continues to record a steady growth rate while serving as a key revenue generator to the country. The local authorities are also focused on further strengthening and expanding the sector by gaining access for local export products in new foreign markets. The many trade agreements and trade concessions enjoyed by Sri Lanka with many foreign countries have given a boost to the country’s exports sector. Given the fast-evolving demands and requirements in foreign markets, there’s a host of new business/investment opportunities in Sri Lanka’s exports sector. Local exporters have been constantly encouraged by the authorities to further diversify, add value and expand the existing local export product portfolio. It is in such a backdrop that Sri Lanka is looking at promoting Ceylon Cinnamon in foreign markets, especially in new markets. There’s a growing demand for high-quality cinnamon and cinnamon-based products in foreign markets and Sri Lankan exporters are required to meet this demand. This has presented new business/investment opportunities for foreign businesses/investors looking at lucrative ventures in Sri Lanka. These opportunities could be witnessed in many segments in the export process starting from the cultivation and production of cinnamon and value additions. The growth and profits recorded by local businesses engaged in the exports sector are indicative of the increasing business potential in Sri Lanka’s exports sector, especially in the emerging Ceylon Cinnamon industry. Foreign businesses could also look at expanding operations through local collaborations.
| Article Code : | VBS/AT/20250304/Z_1 |