CEYLON CINNAMON
SRI LANKA’S BILLION DOLLAR SPICE!
Shirajiv Sirimane calls on Sri Lanka to embrace value added innovation in order to transform the cinnamon sector into a billion dollar export
Cinnamon is a native plant traditionally grown in Sri Lanka’s hill country with its economic value first discovered by the Portuguese several centuries ago. However, logistical challenges of transporting finished cinnamon products from the hill country to coastal ports led the Portuguese to establish cinnamon plantations in the low country, primarily centred around the Southern Province.
Interestingly, it was also the Portuguese who introduced the now iconic cinnamon ‘roll sticks’ – a more space efficient alternative to boxed cinnamon – to overcome shipping constraints.
Today, Sri Lanka is the world’s largest producer and exporter of true cinnamon, holding over 85 percent of the global market for this segment. The country’s key export destinations for both stick and powder forms include Mexico (39%), the US (17.8%) and Peru (12.2%).
However, challenges remain.
For instance, Mexico often blends Ceylon Cinnamon with products from India, Vietnam and China, re-exporting them under different branding – thereby eroding the value of ‘Made in Sri Lanka’ identity. Ironically, although the Portuguese introduced cinnamon to Sri Lanka, the Sri Lankan brand isn’t carried in Portugal today.
According to Prof. Pradeepa Bandaranayake of the University of Peradeniya, an international advocate for Ceylon Cinnamon, the spice known as Cinnamomum zeylanicum was granted Geographical Indication (GI) status by the EU in 2022. This recognition highlights its unique origin, purity and superior quality, setting it apart from other varieties such as cassia.
One of its defining characteristics in comparison to produce from other nations is a significantly low coumarin content, making it a safer and more desirable option for health conscious consumers worldwide.
Various scientific research studies highlight the benefits of Ceylon Cinnamon – including anti-inflammatory and antioxidant properties, as well as its positive effects on blood sugar regulation and cardiovascular health.
However, despite these advantages, Sri Lanka sadly still earns only around US$ 250 million in annual revenue from Ceylon Cinnamon.
A stalwart in the industry, founder and chairman of the Spice Council of Sri Lanka Sarada de Silva believes that there is potential for this figure to soar to around one billion dollars within the next five years, provided the country takes strategic action.
He urges exporters to ensure traceable sourcing and the export of genuine cinnamon.
With over 200 exporters in operation, some engage in unhealthy competition and fail to maintain stipulated export standards. This leads to the quality being compromised, which in turn tarnishes the reputation of Ceylon Cinnamon and deters international buyers.
Although existing cinnamon plantations are adequate, estate owners should prioritise filling vacancies in their fields to facilitate more production, which would maximise yields. Labour shortages – especially a lack of skilled cinnamon peelers – remains a major concern for the sector as the younger generations gravitate towards alternative employment.
There is a growing number of SME based cinnamon producers and they too face the challenge of labour shortages.
To address this impediment, the government must consider establishing and maintaining group cinnamon processing centres, where small and medium-sized producers can finish and pack their products while ensuring high quality standards.
These centres would also create employment opportunities for rural youth who may not have formal educational qualifications, yet are eager to work.
Large estate owners should also contribute by investing in youth training programmes with competitive incentives through institutions such as the Cinnamon Training Academy (CTA) as a long-term solution to the manpower shortage.
Another key step to boosting exports is obtaining international accreditation from certification bodies such as SGS and Control Union Global, both prominent international certification bodies with a presence in Sri Lanka.
These certifications would boost confidence among international buyers, encouraging them to source directly from Sri Lanka. This will raise cinnamon prices and increase our foreign exchange inflows.
Furthermore, with Sri Lankan cinnamon now holding Geographical Indication (GI) status, exporters should actively explore new markets. India for instance, is a major yet underutilised market with high export potential. High economic returns could be achieved given the low freight costs due to India’s close proximity to Sri Lanka.
Moreover, there is a growing demand for our cinnamon powder in Thailand and Singapore, and these markets too should be strategically pursued.
Today, in addition to traditional export formats, Sri Lanka’s cinnamon product portfolio has expanded to include powder, essential oils, air fresheners, hand wash, cinnamon quills and the country’s first 100 percent pure cinnamon brew – a unique non-blended beverage.
Local companies are increasingly recognising the importance of value added innovation and traceability, which is a positive sign for the sector.
With a continued focus on quality, integrity in organic practices and environmental responsibility, Sri Lankan cinnamon is well positioned to become a billion dollar export sector in the near future.
