New department for Cinnamon Development amidst fiscal considerations

• Cabinet Co-Spokesman and Minister Bandula Gunawardena says move will enhance value chains, foreign exchange earnings, stronger position in global market
• Admits additional cost with new Dept., assures to take measures to minimise impact

The Government has decided to establish a new Department for Cinnamon Development amidst considerations, recognising the valuable contribution of the export crop to boost foreign exchange earnings.

 The proposed department is poised to offer a range of facilities and support to producers, suppliers, and exporters involved in cinnamon-related activities. The move was outlined as a 2023 Budget proposal. The joint proposal submitted by President Ranil Wickremesinghe and Plantation Industries Minister Dr. Ramesh Pathirana was approved by the Cabinet of Ministers on Monday.

“The decision to promote cinnamon as a commercial crop underscores its economic significance and aligns with the broader efforts to boost agricultural and export sectors,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing yesterday.

 He said the promotion of cinnamon as a robust commercial crop, will result in enhanced value chains, increased foreign exchange earnings, and a stronger position in the global market. 

Ceylon Cinnamon, known for its distinctive aroma and multiple applications, has historically played a crucial role in the country’s export earnings. Last year, Ceylon Cinnamon received the country’s first-ever Geographical Indication (GI) certification and status from the European Union (EU) Commission marking a major milestone. GI will act as a source of competitive advantage which will help to increase market differentiation, product turnover and allow for a premium price from the consumer. 

When asked for the rationale for further bloating the public sector with a new department at a time the Government finances are already stretched with a significant portion of State funds being allocated to salaries, Gunawardene acknowledged the fiscal challenges and assured that steps will be taken to minimise the impact. 

“The staff for the new department will be sourced from existing agriculture departments, mitigating any additional financial burden.