STAYING TRUE TO CINNAMON
Amila Siriwardena explains how value addition could boost cinnamon exports

Q: How is the cinnamon export sector structured?
A: The sector is a mix of large-scale exporters and numerous small and medium-size enterprises (SMEs). While large companies dominate export volumes, SMEs play a critical role in maintaining the supply chain and contributing to overall production.
Q: What is the value of Ceylon Cinnamon in the global market?
A: Ceylon Cinnamon – also known as true cinnamon – is prized for its superior quality, distinct aroma and unique flavour.
It is a staple ingredient in various cuisines and holds significant value in the health and wellness sector due to its antiinflammatory, antioxidant and antimicrobial properties.
Combined with products such as tea, it is often regarded as a natural remedy, enhancing its appeal among global consumers seeking organic and functional products.
Q: What is Sri Lanka’s annual cinnamon production – and how much of it is exported?
A: Sri Lanka produces approximately 25,000 metric tonnes of cinnamon annually. Of this, around 20,000 metric tonnes are exported to markets worldwide while local consumption remains modest.
Q: And what is the total revenue generated by cinnamon exports?
A: Sri Lanka generates approximately US$ 250 million annually from cinnamon exports. This marks an increase from 217 million dollars in 2023 with rising global demand and higher prices contributing to the growth.
However, there is considerable potential to increase this revenue stream through strategic initiatives.

Q: Does Ceylon Cinnamon command a decent price in international markets?
A: Ceylon Cinnamon fetches premium prices especially in European and North American markets, where quality standards are stringent. However, pricing depends on market preferences and competition.
Q: Are efforts underway to increase Sri Lanka’s global market share in cinnamon?
A: Sri Lanka is actively striving to enhance its market share. The Export Development Board (EDB) is at the forefront of these efforts, organising trade fairs and facilitating business-to-business (B2B) and business-to-consumer (B2C) meetings across the world.
These initiatives provide local exporters with platforms to showcase the unique attributes of Ceylon Cinnamon and build stronger relationships with international buyers.
Q: Is the government providing adequate support to the cinnamon sector?
A: While the government provides sufficient support for cultivation – such as subsidies, nurseries and technical assistance – the processing and value addition segments need more attention.
Enhanced support through investments in advanced processing technology and quality control measures is crucial for boosting Sri Lanka’s competitive edge in the global market.
Q: And is modern machinery being used in the cinnamon sector?
A: Modern machinery is increasingly being adopted by larger companies for steaming, sterilisation, grinding and packaging.
However, a majority of cinnamon quill production (85-90%) is still done manually by farmers. This reliance on traditional methods highlights both the skills in the craft and need for further mechanisation to improve efficiency.
Q: Are exporters adding value to cinnamon products before they’re exported?
A: Exporters are engaged in both bulk exports and value added production. Bulk cinnamon caters to wholesalers while value added products such as pre-packaged cinnamon for retail markets are gaining traction.
While the value addition trend has grown, achieving widespread success remains challenging due to competition and limited resources.
Q: So has Sri Lanka maximised its potential in the cinnamon sector?
A: While cultivation has expanded to places like Anuradhapura, significant opportunities remain untapped, particularly in accessing new markets. For example, the reopening of the Chinese market offers promising growth prospects.
However, improved branding, marketing and product differentiation are essential to fully leverage the sector’s potential.
Q: What challenges does the cinnamon sector face?
A: Labour shortages and quality control are major challenges. The physically demanding nature of cinnamon cultivation and processing has deterred younger generations from entering the sector, creating gaps in the workforce.
Furthermore, maintaining consistent quality is difficult due to the manual nature of cinnamon quill production, underscoring the need for better quality control measures.
Q: And what is the growth potential of the cinnamon sector?
A: The sector holds immense growth potential with the ability to become a billion dollar contributor to Sri Lanka’s economy.
Achieving this milestone requires efforts to improve branding, enhance value addition, explore new markets and address the sector’s existing challenges.
Q: How does cinnamon contribute to other sectors?
A: Beyond its culinary uses, Ceylon Cinnamon is a vital ingredient in the health and beauty sectors. Extracts such as cinnamon bark oil and leaf oil are used in shampoos, soaps and detergents, demonstrating its versatility and expanding its demand across various sectors.
Q: What steps are necessary to secure the future of the cinnamon sector?
A: To unlock sustainable growth and potential, the sector must address labour shortages, invest in quality control mechanisms, adopt advanced processing technologies, and enhance branding and marketing initiatives.