Sri Lanka targets US$300mn in cinnamon exports as Alba price hits record Rs. 7,500

By Charithya Kumarasiri

Sri Lanka is targeting US$ 300 million in cinnamon export earnings this year as farm gate prices for premium Alba-grade cinnamon climbed to a record Rs. 7,500 per kilogram amid growing global demand.

Cinnamon Development Department Director General Janaka Lindara told Daily Mirror that Alba-grade cinnamon was fetching Rs. 7,500 per kilogram, while lower grades were selling at about Rs. 4,500. The prices reflect the amounts paid directly to farmers.

Cinnamon exports generated about US$108 million in the first five months of 2026, following record earnings in 2025, when cinnamon and related products brought in nearly Rs. 80 billion, or about US$ 260 million.

Sri Lanka produces about 25,000 metric tonnes of cinnamon annually from around 39,500 hectares cultivated across 19 districts. It exports cinnamon to about 92 countries.

The industry has accounted for between 1.7 percent and 2 percent of Sri Lanka’s total export earnings in recent years, as well as 23.4 percent of spice exports and about 8 percent of agricultural exports.

Mexico remains Sri Lanka’s largest cinnamon market, accounting for about 60 to 70 percent of exports, while the United States takes a further 11 to 15 percent. The industry is seeking to expand in higher-value markets in Europe, the Middle East and China, where demand for Ceylon cinnamon is growing.

The department aims to increase annual export earnings to US$ 500 million by 2030 and US$1 billion by 2035 under its strategic plan.

Lindara said meeting those targets would require a stronger regulatory framework through the proposed Cinnamon Development Bill, which is expected to support quality control and improvements throughout the production process.

The industry also sees potential to raise earnings through value-added products, including cinnamon oil and pharmaceutical products. Such products currently account for only about 5 percent of exports.

Increasing their share to between 10 and 15 percent could raise export earnings by as much as 50 percent without expanding the area under cultivation, according to the department.

Cinnamon-based agritourism is another largely untapped opportunity. Lindara said initiatives such as Cinnamon Trails could allow visitors to experience traditional cinnamon-processing methods and sample cinnamon-based food products.

However, the industry continues to face rising labour costs, a shortage of skilled cinnamon peelers, higher fertiliser and planting-material prices, outdated cultivation practices and inadequate infrastructure.

Difficulties in consistently meeting international food safety and hygiene standards have also restricted access to some premium markets. Competition from cassia, a cheaper substitute, remains a major threat, particularly as Sri Lanka continues to depend heavily on lower-value markets.