Sri Lanka’s globally renowned spice industry, long celebrated for its authenticity, quality and heritage, is now confronting one of its most pressing challenges. The Planters’ Association of Ceylon (PA) has voiced grave concerns following the Government’s decision to permit the importation of spices under a new regulatory framework that grants “approved enterprise” status to selected companies.
While the stated objective is to process these imported spices into value-added products such as oil extracts and oleoresins for re-export, industry stakeholders fear that this move could severely dilute the reputation of pure Ceylon spices, disrupt local markets and open the door to smuggling and adulteration of Sri Lanka’ famed spices.
The Association argues that this policy undermines decades of effort invested in positioning Sri Lankan spices as premium, high-quality produce in the international market. Without urgent action from policymakers, the decision could deal a severe blow to farmers, exporters and the island’s long-standing reputation as the home of world-class spices.
Safeguarding Local Farmers and Traditional Cultivation
Sri Lanka’s cinnamon, pepper, nutmeg and cloves are globally recognized for their distinct flavor and authenticity, commanding premium prices in international markets. However, the new import scheme threatens to disrupt this delicate ecosystem.
Imported spices, cultivated under different environmental and commercial conditions, benefit from cheaper production costs and wider economies of scale. Introducing these products into the Sri Lankan market, even under the guise of re-export, creates the risk of spillover into domestic supply chains. Local farmers would then face unfair competition as imported products enter the market at lower prices, dragging down demand for genuine Ceylon produce.
The PA noted that previously in 2016, large volumes of imported pepper allegedly found their way into Sri Lanka’s export streams, leading to allegations of smuggling and dilution of the country-of-origin certification. India, Sri Lanka’s largest export destination, responded by tightening restrictions, which severely impacted local producers. The PA warns that this cycle could repeat, leaving thousands of farmers vulnerable to price crashes and lost livelihoods.
Reputational Risks and Trade Relations
Beyond domestic concerns, Sri Lanka’s international standing as a spice-exporting nation hangs in the balance. The phrase “Pure Ceylon Spices” represents centuries of tradition, strict cultivation practices and high standard of quality. By permitting imports, the government risks blurring this distinction, potentially jeopardizing hard-earned trust in global markets.
Countries like India, which currently import significant volumes of Sri Lankan spices under preferential tariffs via the ISFTA and SAFTA agreements, are highly sensitive to irregularities. If Sri Lanka is perceived as re-exporting foreign-grown spices under its own origin certificate, it could trigger retaliatory measures, as seen in the pepper crisis of the past. Already, reports suggest that India has raised concerns over the recent approval of import licenses, with containers facing clearance delays at Indian ports.
Such trade disputes erode confidence in Sri Lankan commodities as a whole. In that regard, the PA warned that if buyers and consumers lose confidence in the authenticity and quality of Pure Ceylon spices is lost, it will prove extremely difficult to restore.
Regulatory Oversight, Health and Security Concerns
The PA also questioned whether regulatory oversight is strong enough to ensure compliance. Past experiences have shown that loopholes in monitoring often lead to smuggling, underreporting and deliberate misclassification of products.
The Association also warned of legitimate phyto-sanitary concerns caused by imported spices, which could also introduce new pests or diseases to local plantations, threatening crop health and food security.
Given these risks, the PA has called on the government to urgently reconsider its decision. They argue that while value-added spice exports are a worthy goal, such initiatives should be pursued by strengthening local production and supporting farmers with modern technology, research and market access rather than relying on imports.
The Association has also urged policymakers to take lessons from the areca-nut crisis, where hasty policy shifts led to market disruptions, international disputes and losses for local farmers. Accordingly the PA urged the Government to avoid jeopardizing a centuries-old industry, and instead prioritize policies that protect its unique brand identity, preserve farmer livelihoods and promote sustainable cultivation.