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Sri Lanka to target 322 new products for export in 2024 with focus on spices

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The UNIDO-initiated panel discussion in progress

By Ifham Nizam

Sri Lanka will target at least 322 new products at export level in 2024. “That would be our target in the ‘One Village One Product’ project, said State Minister of Investment Promotion Dilum Amunugama.

Speaking at a United Nations Industrial Development Organization (UNIDO)- organized conference titled, “Spice Horizons: Tracing the Legacy of Protected Geographical Indication (PGI) on Ceylon Cinnamon and the Future of Other PGI Products for Agricultural Export Development” on Tuesday at the Water’s Edge, he thanked the European Union, UNIDO and the United Nations for support in investment promotion and overall assistance to Sri Lanka.

Highlighting Sri Lanka’s spices and the sector’s potential for export opportunities and trade development, Amunugama said that due to the inherent quality of Ceylon spices, the sector has the potential to enhance value addition, meet the demands of international high end markets and promote technology adaptation.

The event, organized with support from the Delegation of the European Union in Sri Lanka and the Maldives and the Standards and Trade Development Facility (STDF), will build on the success of Sri Lanka’s first ‘Protected Geographical Indications for Ceylon Cinnamon’ project (PGI) with the European Union (EU), he noted.

At the event, UNIDO also presented a new project proposal to expand the global reach of Ceylon spices and other agricultural commodities with PGI potential, such as pepper, coffee, pineapple, coconut and cashew, where the PGI Ceylon Cinnamon model can be replicated and scaled up for quality-led export development.

Institute of Policy Studies of Sri Lanka, Research Economist Dilani Hirimuthugodage, a panelist at the discussion, speaking to The Island Financial Review: “I think it is important for them to also focus on strategies to attract youth to agriculture mainly to the spice sector by giving them proper training and identity (make their self-esteem), strategies to strengthen the spice value chain with good linkage among each stage mainly to avoid asymmetry in information, encourage new technology by introducing smart agriculture, promote and market Ceylon GI, etc. are some of them.”

“The EU has worked with UNIDO on several projects in Sri Lanka supporting the agri-food sector. We are happy to see tangible outcomes such as the Ceylon Cinnamon PGI materialize, stated Dr. Johann Hesse, Head of Cooperation for the EU Delegation to Sri Lanka and the Maldives. “The proposed project will build on the success of the EU-funded ‘Best Standardized Practices for the Agri-by Food Sector Development’ (BESPA-FOOD) project, implemented by UNIDO jointly with the Food and Agriculture Organization (FAO).”

The proposed project will draw on UNIDO’s 2023 ‘Value Chain Analysis on Pepper, Clove, and Nutmeg in Sri Lanka’ also funded by the STDF, which identifies the gaps in food safety and quality, starting from farmgate to distribution on channels and right up to the retail market. The analysis outlines the necessary conditions to access international markets and gain a competitive advantage in international trade.

Dr. Jairo Villamil-Diaz, International Senior Technical Specialist, UNIDO said, “UNIDO worked closely with the Department of Export Agriculture (DEA), the Export Development Board (EDB), the Spice Council (TSC), the Spices and Allied Products Producers’ and Traders’ Association (SAPPTA), and other key public and private stakeholders, tirelessly striving to secure the PGI registration for Ceylon Cinnamon. We also provided similar support for Ceylon Tea. Now, Sri Lanka can leverage these learnings to ensure that other spices, like pepper, cloves, nutmeg/mace, and coffee become integral parts of the global food supply chain.”

In collaboration with the Ministry of Agriculture and Plantation Industries, Ministry of Industries, and State Ministry of Investment Promotion, the proposed project will guide Sri Lanka’s agricultural sector towards quality-led export growth, supporting upstream actors in securing quality-based price differentials, improving price predictability and expanding access to premium markets. Additionally, UNIDO will continue to support the development of Ceylon Cinnamon, providing strategic guidance to further enhance the sector’s global standing, including in securing PGI registration in other high-end markets.



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Ceylon Tea conquers Libya: Exports leap 416%

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In a world where every strong cuppa tells a unique story, Sri Lanka’s famed Ceylon Tea continues to carve its legacy – one cup at a time. The latest tea export figures for March 2025 reveal a tale of resilience, with total shipments rising to 23.43 million kilograms, up from 21.25 million kgs the previous year.

But the real headline is; Libya’s staggering 416% surge in Ceylon Tea imports – marking a bold new chapter in Sri Lanka’s tea trade. While traditional markets like Iraq and Russia held steady, Libya emerged as the ‘breakout star’, importing 5.31 million kgs in the first quarter of 2025 – a jaw-dropping leap from just 1.03 million kgs in 2024.

This explosive growth signals a burgeoning demand for Sri Lanka’s premium leaves in North Africa, where the rich, aromatic flavors of Ceylon Tea are winning hearts and palates.

Quadrupling Libya’s appetite for Ceylon Tea even in challenging global markets, is reflecting the fact that Sri Lanka’s tea can find loyal fans in evolving markets.

However, while the export values shine in USD terms, the rupee value of tea exports dipped slightly – a stark reminder of currency fluctuations impacting export earnings. Yet, the broader trend remains positive for Ceylon Tea, with cumulative exports for Q1 2025 reaching 63.21 million kgs, up from 62.33 million kgs last year.

Key markets like Iraq (+7%) and Chile (+41%) showed strong growth, while Russia and the UAE saw mild declines. Meanwhile, Tea Bags and Instant Tea have posted gains even in rupee terms – marking a bright spot in an otherwise mixed landscape, where Tea in Bulk and Green Tea segments have witnessed a decline against the same period of the previous year.

On the production front, tea production for the month of March 2025 totalled 24.43 M/Kgs, showing an increase of 4.86 M/Kgs vis-à-vis 19.57 M/Kgs of March 2024. All elevations showed an increase in comparison with the corresponding month of 2024.

“As Sri Lanka’s tea industry navigates global headwinds, the increase in production and Libya’s soaring demand could offer a breather,” analysts said.

(Source: Forbes & Walker Pvt Ltd, Sri Lanka Customs, Central Bank of Sri Lanka)

By Sanath Nanayakkare

Photo Credit: Sri Lanka Executive Aviation Services

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Fits Retail and Abans unveil exclusive DeLonghi Premium Coffee experience

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The iconic DeLonghi coffee machines at Abans showroom

In a groundbreaking collaboration set to transform Sri Lanka’s premium coffee landscape, Fits Retail has partnered with retail giant Abans PLC to showcase the iconic DeLonghi coffee machines at two of Colombo’s most prestigious locations: Abans Elite Colombo 3 and Abans Havelock City Mall showrooms.

This exclusive partnership presents a rare opportunity for coffee aficionados to experience firsthand why DeLonghi has become synonymous with coffee perfection worldwide.

With a heritage spanning over 100 years, DeLonghi proudly holds the title as the number one coffee machine brand in more than 46 countries, celebrated globally for its exceptional quality, innovation, and unrivaled Italian craftsmanship. Fits Retail’s collaboration with Abans PLC brings these legendary machines directly to Sri Lankan coffee enthusiasts, creating immersive experience zones designed to elevate everyday coffee moments into extraordinary rituals.

At these dedicated demonstration zones, visitors can discover the unparalleled precision engineering and user-friendly technology that have made DeLonghi machines the preferred choice for discerning coffee lovers in more than 46 countries worldwide.

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Ceyline Group and Lion Brewery Forge a Sustainable Future with Eco-Friendly Warehousing and Distribution.

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Mr. Rajiv Meewakkala Chief Executive Officer Lion Brewery & Mr. Piyal De silva Deputy Chairman Ceyline Group

Ceyline Total Solutions, the end-to-end logistic solutions provider of Sri Lanka’s leading maritime and logistics group Ceyline, has built Lion Brewery’s first sustainability-focused warehousing and distribution center in just 100 days.

Located in Tangalle, the facility reflects a strong commitment to environmental responsibility. Half of the structure is made from repurposed shipping containers, reducing both waste and carbon emissions. The project, executed by Ceyline’s brand for sustainable living spaces “Out of the Box” features interior fittings made from recycled and reused brewery waste materials, maximizing sustainability and cost efficiency. Ceyline also has already applied for CEB approval to install solar power for the facility to ensure its operation is powered by clean and green energy.

Lion Brewery will further its mission for an efficient and eco-friendly supply chain by incorporating elements such as electric forklifts, rainwater harvesting, and energy-efficient lighting.

This collaboration not only delivers a pioneering green logistics facility but also sets a new benchmark for sustainable warehousing in Sri Lanka. It showcases the power of collaborative innovation in driving responsible industrial development.

Kaveen Gayathma, Senior Vice President (Outbound Logistics) of Lion Brewery, added, “This project further strengthens our distinctive ‘route-to-market’ approach. Our collective efforts in conceptualizing,

drafting, and crafting have culminated in the creation of a truly one-of-a-kind model. The company’s unwavering commitment to environmental stewardship and sustainability is clearly demonstrated here, all while achieving our strategic objectives in a practical and cost-effective manner.”

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