Sri Lanka Earns About US$125 Million from Cinnamon Exports in First Half of 2026
Approximately Rs. 40 billion in six-month earnings strengthens Ceylon Cinnamon’s position as Sri Lanka targets US$300 million for the full year
Publication date: 18 August 2026
Sri Lanka earned approximately US$125 million—around Rs. 40 billion—from cinnamon exports during the first six months of 2026, according to figures attributed to the country’s Department of Cinnamon Development.
The half-year result highlights the growing value of one of Sri Lanka’s most distinctive agricultural exports and comes as the industry works towards a reported US$300 million export-earnings target for 2026.
The performance is particularly significant because Ceylon Cinnamon is more than a widely traded spice. It is a product closely connected to Sri Lanka’s identity, rural livelihoods, export reputation and potential for higher-value manufacturing.
A strong six-month contribution to export earnings
The latest figure means cinnamon exports generated an average of more than US$20 million per month during the January–June period.
The reported US$125 million result also follows a strong start to the year. Department of Cinnamon Development Director General L.M.J.K. Janaka Lindara said in June that Sri Lanka had earned approximately US$90 million from Ceylon Cinnamon exports during the first four months of 2026, with products reaching around 70 countries.
Later reports placed earnings for the first five months at about US$108 million, before the six-month total reached approximately US$125 million.
These figures indicate continued demand for Sri Lankan cinnamon, although reaching the US$300 million full-year target will require stronger earnings during the second half of 2026.
Sri Lanka’s cinnamon milestone at a glance
- US$125 million: Reported cinnamon export earnings during January–June 2026
- Approximately Rs. 40 billion: Reported rupee value of the six-month earnings
- US$300 million: Industry export-earnings target for the full year
- Around 70 countries: Reported international reach of Ceylon Cinnamon exports
- US$250–260 million: Range cited in reports for cinnamon and cinnamon-product export earnings in 2025
- Rs. 7,000 per kilogram: Reported May 2026 price for Alba-grade cinnamon
Building on a record-setting 2025
Sri Lanka entered 2026 after its cinnamon industry recorded its strongest annual export performance to date.
Public reports citing the Department of Cinnamon Development have placed 2025 earnings at approximately US$250 million to US$260 million. The difference appears to reflect reporting or data-scope variations, but both figures point to a historically strong year for cinnamon and cinnamon-based products.
The Department’s full-year target of US$300 million for 2026 would therefore represent a further step forward. Achieving it would require maintaining international demand while increasing the value earned from each unit exported.
This makes product quality, market positioning, certification, traceability and value addition increasingly important.
Record prices reflect demand for premium grades
The value of the industry is also being supported by higher prices for premium cinnamon.
In July, the Department of Cinnamon Development reported that Alba-grade cinnamon had reached Rs. 7,000 per kilogram in May 2026, described as the highest price recorded for the grade.
Alba is regarded as one of the finest grades of Ceylon Cinnamon. Its narrow quill diameter, skilled processing requirements and premium market positioning can attract higher prices than lower grades.
Strong prices can create better opportunities across the supply chain, but higher export earnings do not automatically produce equal benefits for every grower or worker. Long-term gains will depend on productivity, quality standards, fair market access, processing capacity and the ability of producers to participate in higher-value segments.
Ceylon Cinnamon’s international market reach
Sri Lankan cinnamon is exported across Latin America, Europe, Africa, Asia and Oceania.
According to the Department’s Director General, Mexico remained the leading market for Ceylon Cinnamon, followed by Colombia, Peru and Guatemala. China is also being developed as a newer destination.
Latin American markets have traditionally played a major role in Sri Lanka’s cinnamon trade. However, expanding into additional markets can reduce overdependence on a limited number of buyers and create new demand for differentiated products.
Potential growth areas extend beyond traditional cinnamon quills. They include:
- Retail-ready cinnamon powder and cut quills
- Cinnamon bark and leaf oils
- Food and beverage ingredients
- Wellness and personal-care products
- Branded consumer products
- Certified organic and traceable product ranges
- Premium products carrying recognised origin protection
The larger commercial opportunity is therefore not simply to export more cinnamon, but to retain a greater share of the final product value within Sri Lanka.
China presents opportunity—and a standards challenge
China is one of the industry’s newer target markets. Sri Lanka began exporting Ceylon Cinnamon to China in 2025 after progress on market-access arrangements.
The Department has acknowledged that entering the Chinese market will take time. Cassia is already widely used and familiar to Chinese consumers, while awareness of the differences associated with Ceylon Cinnamon remains comparatively limited.
Market access also depends on compliance. Reports indicate that exporters serving China must be registered and meet relevant standards, including Good Agricultural Practices for plantations and Good Manufacturing Practices for processing facilities.
This creates a dual challenge: Sri Lanka must promote consumer awareness while ensuring that growers, processors and exporters can consistently meet the quality and traceability standards required by international buyers.
Geographical Indication protection strengthens authenticity
Ceylon Cinnamon received Protected Geographical Indication status in the European Union in February 2022, becoming Sri Lanka’s first product to obtain this recognition.
The protection helps distinguish genuine Ceylon Cinnamon linked to Sri Lanka from other cinnamon varieties and products originating elsewhere.
This matters because the international market often uses the word “cinnamon” for materially different products. Stronger origin identification can help buyers recognise authenticity, support premium positioning and protect the reputation associated with Sri Lankan production.
However, geographical recognition creates its greatest commercial value only when it is supported by consistent quality, effective control systems, international promotion and consumer understanding.
Cinnamon strength within a mixed spices sector
The cinnamon result should also be viewed within Sri Lanka’s broader export picture.
The Sri Lanka Export Development Board reported that the country’s combined merchandise and services exports reached approximately US$9.01 billion during the first half of 2026, an increase of 8% compared with the same period in 2025.
Within that performance, exports classified under Spices and Essential Oils generated US$208.32 million during January–June 2026, representing a marginal year-on-year decline of 0.10%.
The EDB attributed the broader category’s softer result mainly to a 31.34% fall in pepper exports. This shows why cinnamon’s positive performance should not be treated as evidence that every part of the spice sector is growing at the same rate.
It also demonstrates cinnamon’s strategic importance: stronger performance from Ceylon Cinnamon can help offset weakness elsewhere in the spices portfolio.
From raw exports to higher-value products
Sri Lanka’s long-term cinnamon opportunity lies in combining production growth with value addition.
Exporting premium quills will remain important, but additional value can be created through branded packaging, oils, extracts, food ingredients and consumer-ready products. Better branding and market education can also help international buyers understand why Ceylon Cinnamon is different from cassia and why verified origin matters.
Progress will require coordinated work across several areas:
- Quality and consistency: Supporting growers and processors to meet export specifications across every shipment.
- Certification and traceability: Expanding access to GAP, GMP, organic and GI-related compliance systems.
- Value-added manufacturing: Producing more finished and semi-finished cinnamon products within Sri Lanka.
- Market diversification: Building demand in newer destinations while strengthening established markets.
- Brand education: Explaining the origin, authenticity and product characteristics of genuine Ceylon Cinnamon.
- Producer participation: Ensuring smallholders and skilled cinnamon peelers can benefit from industry growth.
The SLD perspective
Sri Lanka’s reported US$125 million in cinnamon export earnings during the first half of 2026 is an encouraging result for a nationally significant industry.
The story is not only about a six-month revenue figure. It is about how Sri Lanka can convert a product with deep historical roots into a modern, protected and globally recognised premium export.
The US$300 million target is ambitious. Reaching it will depend on the second-half performance of the industry, global demand, pricing, production capacity and access to international markets.
More importantly, sustainable success should be measured by the value Sri Lanka retains—not only the volume it ships. Stronger branding, certified origin, quality processing and locally manufactured products can help cinnamon create wider benefits for growers, skilled workers, exporters and the national economy.
Sri Lanka Directory recognises the contribution of the country’s cinnamon growers, peelers, processors, exporters, researchers and public-sector organisations working to strengthen the international position of genuine Ceylon Cinnamon.
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Source Transparency
The central six-month figure—approximately US$125 million or Rs. 40 billion—is based on an announcement attributed to Sri Lanka’s Department of Cinnamon Development and reported by Sri Lankan media, including Daily News and ITN, in August 2026.
The EDB’s official first-half export release groups cinnamon within the broader Spices and Essential Oils category and does not separately publish a cinnamon-only figure in its main table. For this reason, the article attributes the US$125 million figure to the Department rather than presenting it as an independently itemised EDB statistic.
Reports have cited both US$250 million and approximately US$260 million for 2025 cinnamon-related exports. This article presents that information as a range rather than choosing one figure without a published reconciliation.
