BOI seeks international technology partners to transform Ceylon cinnamon, coffee, black pepper and sea cucumber into higher-value export products

Sri Lanka has presented a $65.1 million investment portfolio to transform cinnamon, coffee, black pepper and sea cucumber into higher-value products using modern processing, authentication and research. Sri Lanka has presented four proposed agrifood investment opportunities worth approximately $65.1 million at an FAO investment forum in Rome, targeting advanced processing, biotechnology, traceability and premium international markets.

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The Board of Investment of Sri Lanka (BOI) has presented an approximately $65.1 million agrifood investment portfolio to international investors, outlining plans to create more value from Ceylon cinnamon, coffee, black pepper and sea cucumber.

The opportunities were presented at the Food and Agriculture Organization of the United Nations’ Hand-in-Hand Initiative Investment Forum 2026, held at FAO headquarters in Rome from 13 to 16 October.

BOI Chairman Duminda Hulangamuwa led the Sri Lankan delegation, accompanied by BOI Director General Dr. Sulakshana Jayawardena. Sri Lanka’s presentation was titled “Unlocking Premium Export Markets through Value Addition and Product Differentiation.” Daily FT

The proposal represents a move beyond the conventional export of raw agricultural commodities. Its central objective is to encourage investment in processing, extraction, authentication, research, product development and international branding.

From Exporting Raw Products to Retaining More Value

Sri Lanka has produced internationally recognised agricultural products for generations. However, a considerable share of their ultimate commercial value can be created outside the country when raw or minimally processed commodities are converted into branded ingredients and finished products overseas.

The BOI’s presentation identified limited processing infrastructure, insufficient extraction capacity, supply-chain traceability weaknesses and underdeveloped international commercial partnerships as barriers to capturing more value locally. storage.googleapis.com

The proposed response is to combine Sri Lanka’s agricultural heritage with modern science and technology.

This could involve extracting valuable natural compounds, verifying product origins, standardising ingredients, developing specialty products and presenting them to global buyers in more commercially valuable forms.

Four Investment Opportunities Presented in Rome

The official FAO investment material provides separate proposed investment amounts and projected returns for the four value chains. These are financial projections attached to the investment cases—not guaranteed results.

Ceylon Cinnamon: Moving from Spice to Natural Active Ingredient

The Ceylon cinnamon investment case carries a proposed value of $20 million and the highest projected internal rate of return among the four opportunities, at 35.4%.

The plan is intended to support processing, extraction, traceability and branding. Possible product areas identified in the BOI presentation include standardised cinnamon extracts, essential oils, functional foods, oral-care products, cosmetics and nutraceutical ingredients. fao.org

Science could also play a role in authenticating genuine Ceylon cinnamon and distinguishing it from cassia. The BOI highlighted DNA barcoding and chemical profiling as tools that could protect origin, improve traceability and help preserve the premium associated with the Ceylon name.

Ceylon Coffee Receives the Largest Proposed Allocation

At $29.4 million, Ceylon coffee represents the largest individual investment case in the portfolio.

The proposed work includes wet-processing capacity, new plantations, farmer training and international market promotion. The BOI also identified opportunities involving specialty-grade coffee, green coffee extracts and ingredients derived from coffee cherries.

FAO’s Sri Lanka investment profile lists 3,600 projected direct beneficiaries, 14,800 indirect beneficiaries and a projected per-person income increase of $4,150 under the coffee investment case. fao.org

These are forecast impacts presented within the investment proposal and should not be treated as benefits that have already materialised.

Black Pepper as a High-Value Ingredient

The proposed black-pepper investment is valued at $7.47 million, with a projected internal rate of return of 20.8%.

Rather than competing only through the sale of bulk pepper, the proposal seeks to increase value through modern processing, ingredient extraction and premium branding.

The BOI identified high-purity oleoresins and piperine as potential products for supplement and pharmaceutical formulators. Daily FT

Such processing could allow Sri Lankan pepper to be marketed not merely as a raw spice but as a traceable ingredient for specialised international industries.

Sea Cucumber Extends the Plan Beyond Spices

Although the news has been framed around “spice science,” one of the four investment cases concerns sea cucumber.

The proposed $8.22 million development includes hatcheries, sea farms and export-certified processing facilities. FAO’s investment profile lists a projected 24.7% internal rate of return, 3,900 direct beneficiaries and 14,000 indirect beneficiaries. fao.org

The BOI also identified potential applications involving marine collagen, peptides and bioactive compounds for premium beauty and skincare products. Daily FT

What “Spice Science” Could Look Like

Technology Partners Are Central to the Proposal

The BOI is targeting businesses with technology and commercial capabilities that Sri Lanka requires to develop these value chains.

These may include extraction and biotechnology companies, nutraceutical and pharmaceutical formulators, research partners, food-technology businesses and international beauty and wellness brands.

Technologies identified in the presentation include:

• DNA and genomic authentication
• Chemical compound profiling
• Advanced extraction
• Standardisation of bioactive compounds
• Product traceability
• Clinical validation
• Precision formulation
• Export-certified processing

The objective is to combine investors’ technology, research and international-market access with Sri Lanka’s raw materials, agricultural heritage and producer communities. Daily FT

Potential Impact on Farmers and Communities

The four cases together identify 21,100 direct beneficiaries.

The individual FAO figures also total approximately 84,300 indirect beneficiaries:

• Ceylon cinnamon: 10,000 direct and 37,000 indirect beneficiaries
• Ceylon coffee: 3,600 direct and 14,800 indirect beneficiaries
• Black pepper: 3,600 direct and 18,500 indirect beneficiaries
• Sea cucumber: 3,900 direct and 14,000 indirect beneficiaries

These figures are projected outcomes in the investment cases. Actual benefits would depend on securing investors, implementing the projects successfully and ensuring that producers participate effectively in the proposed value chains. fao.org

Why Investors Were Invited to Sri Lanka

The official investment presentation promoted several features of Sri Lanka’s business environment, including foreign-ownership opportunities, investment-protection agreements, trade arrangements and preferential access to selected international markets.

It also positioned Colombo’s port connectivity, Sri Lanka’s workforce and its internationally recognised “Ceylon” origin as commercial advantages. storage.googleapis.com

However, these general advantages do not remove the need for investors to conduct their own legal, financial, environmental and commercial due diligence.

Investment Proposal, Not Secured Funding

Readers should not confuse this initiative with the separately reported $26.3 million HDDES Extracts investment for a high-tech spice-processing facility in Ingiriya.

That article concerns an identified company and a supplementary agreement supporting a particular investment project.

The Rome presentation is different. It comprises four proposed investment opportunities marketed to international investors through the FAO Hand-in-Hand platform.

Following the forum, the BOI said it would engage with investors met in Rome, facilitate bilateral discussions and continue targeting technology-driven companies interested in establishing value-added operations in Sri Lanka. Daily FT

A Potential New Chapter for Sri Lankan Agrifood Exports

Sri Lanka’s Rome presentation offers a commercially ambitious vision: moving from the sale of bulk commodities towards traceable ingredients, specialised extracts and science-supported products.

For local businesses, researchers and producers, its importance lies in the possibility of developing more stages of the value chain inside Sri Lanka.

The success of that vision will depend on attracting credible investors, establishing appropriate processing and research capacity, protecting producers’ interests and converting investment proposals into functioning enterprises.

For now, the $65.1 million portfolio should be understood as an international investment invitation with projected financial and community outcomes—not as completed funding.

Nevertheless, it signals that Sri Lanka wants to compete not only through the historic reputation of its spices, but through technology, research, product development and stronger global positioning.