Despite protests from local spice growers, the country plans to import spices to address the current shortage and support the production of value-added products, The Daily Morning Business has learned.

Speaking to The Daily Morning Business,  Export Development Board (EDB) Policy and Strategic Planning Director Kumudinie Mudalige stated: “It is a good decision that the Government is permitting importing specific spices for reprocessing and re-export which is done under the Import and Export (Control) Act No. 1 of 1969.”

However, there may be some protests from the local parties as it will affect the local price controls, she added. Yet, if the importing of spies is going to be operated under a controlled situation it will bring better prospects to the country.

Moreover, most of our spices are exported without value addition. Therefore, these imported spices should be re-exported with value addition. 

“These projects are coming through the Board Of Investment (BOI). Generally, they are not allowed without value addition. Here also the same value addition is a must,” she explained.

The Cabinet Decision Paper states that the approval has been given to certain enterprises certified under the Sri Lanka Board of Investment to enable importing specific spices for reprocessing and re-export by issuing import control regulations under the Import and Export (Control) Act No. 1 of 1969. 

Moreover, the President and the Cabinet of Ministers implemented two key recommendations based on the report. Enterprises that have been recognised by the BOI are now permitted  to import specific spices and they should re-export them by adding value such as oils and extracts. Therefore, to help with this initiative, new rules under the Import and Export (Control) Act will be released. 

Speaking to The Daily Morning Business, Director – Export Agriculture Janak Sanjeewa Badugama said, currently, most of the spices are exported from Sri Lanka on a bulk basis. The country supplies the raw materials around 70-80%  in raw form. 

Moreover, the value added spices have a huge demand in the global market. Yet, the value added product needs to maintain the quality. Therefore, the spice exporters need to have the specification and have to maintain the standards that are lacking in the Sri Lankan context, he explained. 

Additionally, if Sri Lanka is exporting to countries such as the European Union (EU), Japan or USA , the spice exporters have to meet certain quality standards that are very important.