13 July 2024 02:39 am Views - 1003
By Nuzla Rizkiya
As Sri Lanka strives towards economic recovery by reducing its reliance on imports, President Ranil Wickremesinghe called for seizing new export market opportunities, particularly in the cinnamon sector.
“Historically, we supplied the world with cinnamon. Now, we must return to that legacy. The area under cinnamon cultivation needs to expand. The government proposes providing new land,” said Wickremesinghe during the official opening ceremony of the Cinnamon Department located in Karandeniya, Galle.
“Each acre of land should yield maximum productivity and we should focus on cultivating high-quality cinnamon varieties,” he added.
The government last week established the new Cinnamon Cultivation Department to encourage increased output.
The newly inaugurated Cinnamon Cultivation Department will work towards potentially increasing cinnamon production at least by threefold, through the allocation of new land, according to Wickremesinghe.
The new offices were established following a proposal by Wickremesinghe in the 2023 budget.
A main cause for the bankruptcy in Sri Lanka was the reliance on an import economy and obtaining huge loans for imports. Therefore, to ensure the past does not repeat, the government said it is prepared to support, particularly to the companies that would work towards boosting sales of cinnamon alongside increasing production, Wickremesinghe said.
He went on to stress the urgent need of the nation to adopt collaborative and modernised economic approaches to attract new investments and transition into an export-oriented economy.
“We must swiftly adopt a new economic system and earn foreign exchange through exports. Sales must be boosted. We can seek both local and international expertise to enhance sales. If companies take on this responsibility, the government is prepared to support them,” Wickremesinghe stated.
“We need to restart these activities with a strategic plan. If we do not transition to an export economy, our country’s economy will collapse again in 15 years,” he cautioned. Cinnamon is the third largest agricultural export from Sri Lanka, with 31,000 hectares under cultivation, employing nearly 400,000 people, according to the Export Development Board (EDB).
With average export earnings of US $ 191 million and another US $ 7 million for value-added products, cinnamon holds great potential as a major revenue and employment generation avenue in Sri Lanka.
The EDB Sri Lanka holds the ownership of the Pure Ceylon Cinnamon brand, along with associated names such as Ceylon Cinnamon, Sri Lanka Cinnamon and Sri Lanka Kurundu. The Pure Ceylon Cinnamon trademark is registered in the European Union, Mexico, the USA, Peru and Colombia, with the objective of differentiating it from cassia.