Though Ceylon Cinnamon continues to dominate by making up 80% of global market share, Sri Lanka is faced with competition from a more widely available variety: cassia, thereby adding pressure to its artisanal local industry, the World Bank Group noted in its recent study.

“As the world's largest producer and exporter of Ceylon Cinnamon, Sri Lanka accounts for 80 percent of global market share. However, Ceylon Cinnamon faces strong competition from a more widely available (though less refined) variety, known as cassia,” the report said.

It added that with over 350,000 persons depending on the agricultural product for their livelihoods, the industry is “further squeezed by labor shortages, high production costs, and limited technical skills among smallholder farmers”.

It also noted that the industry supports the livelihoods of over 100,000 smallholder growers. “These factors make it difficult to offer products to premium export markets. Delays in obtaining Geographical Indication (GI) certification have also limited the industry’s ability to maximise the market awareness,” the report said.

By 2030, the report added that the global spices market is projected to reach a value of $ 34 billion.

It stated that while various initiatives have taken off over the years, reorienting the industry requires more strategic, concerted efforts to ensure long-term growth.

Agriculture contributes 8.4% to Sri Lanka’s GDP and sustains a quarter of all jobs. It is a key part of the country’s heritage and its strategic future. According to the report, Sri Lanka's untapped export potential – estimated at $ 10 billion annually – could create over 140,000 jobs with targeted reforms. “By enhancing productivity, liberalising trade, and modernising the investment climate, Sri Lanka can boost its competitive advantage and raise incomes across manufacturing, services, and agribusiness.”