• 15 local exporters approved to begin shipments to China
• China expected to become a key market alongside Latin America
• SL aims to export 5,000 tonnes of cinnamon in first year
• Cinnamon export revenue projected to reach $ 250-300 m in ’25

Fifteen cinnamon exporters have been approved to export Ceylon Cinnamon to China as Sri Lanka gears up to capitalise on the $ 2 billion Chinese spice market, the Department of Cinnamon Development reveals.

Speaking to The Sunday Morning Business, Department of Cinnamon Development Director General L.M.J.K. Lindara stated that Sri Lanka had signed a Memorandum of Understanding (MOU) with China in October 2023 in order to facilitate the export of Ceylon Cinnamon to the country. 

Subsequently, the countries had collaboratively developed the protocols for the export of Ceylon Cinnamon to China based on Chinese requirements, which were later approved by China. 

Lindara noted that the General Administration of Customs of China (GACC) had thereafter inspected the processes implemented in planting and processing Ceylon Cinnamon. According to him, these inspections were carried out virtually by the GACC. 

He added: “As of now, we have given approval to 15 local companies to export cinnamon to China. These 15 companies are currently taking the necessary steps to commence the export of Ceylon Cinnamon to China.”

He further said that Sri Lanka had generated $ 226 million from the export of Ceylon Cinnamon in 2024. According to him, the Latin American region, particularly countries such as Mexico, Peru, and Ecuador, constitute the main export market for Ceylon Cinnamon, accounting for around 65-70% of total exports.

Lindara explained that the country’s entry to the Chinese market was part of a larger campaign to identify new markets for Ceylon Cinnamon.

“China offers a huge market for spices, amounting to around $ 2 billion. Our goal is to secure a large chunk of this Chinese market with the export of Ceylon Cinnamon. We believe that we will be able to export around 5,000 tonnes of cinnamon to China during this year,” he said.

He added that revenue from the export of Ceylon Cinnamon was expected to increase to around $ 250-300 million this year. 

Moreover, he pointed out that Sri Lanka currently produced around 20,000 tonnes of Ceylon Cinnamon annually and that the department was planning to increase it to around 25,000 tonnes in three years. 

Accordingly, they are looking to expand cinnamon cultivation from the traditional areas to non-traditional areas such as the Mahaweli zone, North Central Province, and Northern Province.