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 the record price, while lower grades sold at about Rs. 4,500 per kilogram. The figures reflect the amounts paid directly to farmers.
Cinnamon exports generated around 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 roughly 25,000 metric tonnes of cinnamon a year from about 39,500 hectares cultivated across 19 districts, and exports the spice to some 92 countries. The industry has accounted for between 1.7% and 2% of the country’s total export earnings in recent years, 23.4% of spice exports and about 8% of agricultural exports.
Mexico remains the largest market, taking 60% to 70% of exports, followed by the United States at 11% to 15%. The department is looking to expand into higher-value markets in Europe, the Middle East and China, where demand for Ceylon cinnamon is rising.
Under its strategic plan, the department aims to lift annual export earnings to US$500 million by 2030 and US$1 billion by 2035. Lindara said reaching those targets would require a stronger regulatory framework through the proposed Cinnamon Development Bill, which is expected to support quality control across the production process. He added that value-added products such as cinnamon oil and pharmaceutical derivatives offer further scope to raise earnings.
