The Sri Lankan government has allocated a sum of Rs. 2.1 million for small and medium-scale cinnamon processing plants in the Galle district to increase quality and yield, a statement released by the Department of Government Information yesterday (10) said.
“An amount of Rs. 2.1 million has been allocated for the construction of six small and medium-scale cinnamon processing centres to enhance product quality and encourage value-added products by streamlining the post-harvest technological process of cinnamon products,” the statement published on the department’s Facebook page said.
It further added that the initiative is part of the Cinnamon Development Department’s Galle District Office’s efforts to increase the quality and yield of cinnamon products in the district.
Further, an amount of Rs. 1.6 million has been allocated for the construction of two cinnamon leaf oil extraction centres. A cinnamon drying machine will also be purchased under this, the statement said.
Sri Lanka’s export earnings from spices and concentrates reached $ 461.85 million in 2024, driven by strong performance in pepper and cinnamon exports.
Sri Lanka Export Development Board (EDB) data for 2024 also shows that Sri Lanka’s cinnamon exports saw a 17.89% increase compared to the previous year, contributing to a 50.1% rise in overall spice and concentrate exports.
Sri Lanka’s main export destinations for cinnamon include the US, India, the UK, China, and Germany.
Agriculture and Livestock Deputy Minister Namal Karunaratne recently told Parliament that Sri Lanka’s demand and pricing for spice exports, namely pepper, cinnamon, and karunka, have been impacted by the re-export of refuse produce from countries such as Indonesia and Vietnam.
Karunaratne claimed that the practice had impacted Sri Lanka’s standing in global spice exports, though the industry remains lucrative for the foreseeable future.
To reach Sri Lanka’s export target of $ 18.2 billion in 2025, the EDB and other relevant institutions overseeing Sri Lankan exports are seeking to diversify products and promote value-added exports to improve market earnings, and enhance industry resilience.