Pepper market in Sri Lanka

Earlier Report Observations

Between 2018 and 2020, Sri Lanka's pepper market volume declined from 37 611 t to 33 802 t. The entry of new players and the launch of large production units in 2018 helped maintain initial production at 48 253 t. However, tightening market access and labeling rules in 2019 likely constrained imports and affected domestic trade. The COVID-19 pandemic in 2020 caused global supply disruptions, yet production rose to 43 557 t while market volume remained stable.

In 2021, further labeling rule tightening and the introduction of new processing technology by major producers coincided with a sharp export surge to 17 959 t, which pulled market volume down to 24 585 t. State-led spice production projects in 2022 supported output growth to 44 090 t, and a drop in exports allowed market volume to recover to 32 726 t. By 2023, however, increased exports of 14 270 t again reduced domestic market volume to 30 940 t.

By 2024, pepper exports reached 25 979 t, highlighting the growing orientation toward foreign markets, while imports remained negligible at 21 t.

Production pepper in Sri Lanka

In kind, 2017-2020, t

On a global scale, Sri Lanka ranked as the 6th largest producer of pepper during the period from 2017 to 2020.

Top producers of pepper, 2017-2020

World map of production of pepper, 2017-2020

In 2020, Sri Lanka produced 43 557 tons of pepper, marking a 5.1% increase compared to the previous year. Over the 2017-2020 period, production grew by 23.9%, with an average annual growth rate of 7.4%. The highest production level was recorded in 2018 at 48 253 tons, which represented a significant increase of 37.3% from the prior year. However, in 2019, production experienced its largest decline of 14.1%.

Annual dynamics of production in Sri Lanka in kind, 2017-2020, t

In value, 2017-2020, M $ US

Sri Lanka's pepper production value declined for the second consecutive year in 2020, reaching 235.9 million US dollars, a modest reduction of 3.8% year-over-year. From 2017 to 2020, overall production value increased by 6.7%, translating to an annualized growth rate of 2.2%. The peak value occurred in 2018 at 339.5 million US dollars, reflecting a substantial increase of 53.5%. In contrast, 2019 saw the largest decline of 27.7%.

Annual dynamics of production in Sri Lanka in value, 2017-2020, M $ US

Exports pepper from Sri Lanka

Exports in kind, t

After two years of decline, pepper exports from Sri Lanka rebounded in 2020, reaching 9 761 tons, a 24.9% improvement compared to the previous year. Over the 2017-2020 period, exports decreased by 26.7%, with an average annual decline of 9.8%. The lowest export volume was recorded in 2019 at 7 813 tons, which represented the largest decline of 39.8% during this timeframe.

Annual dynamics of product's exports from Sri Lanka in kind, 2017-2020, t

From 2017 to 2020, India was the primary buyer of pepper from Sri Lanka, accounting for 76.9% of total exports in volume, while the remaining share was distributed among a diverse group of other countries.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Sri Lanka in kind, 2017-2020

Exports in value, K $ US

In 2020, pepper exports from Sri Lanka were valued at 52 869 thousand US dollars, showing a 14.3% increase compared to 2019. However, over the 2017-2020 period, export value decreased by 36.9%, with an average annual decline of 14.2%. The lowest value was recorded in 2019 at 46 268 thousand US dollars, marking the largest decline of 49.3%. The peak occurred in 2018 at 91 290 thousand US dollars.

Annual dynamics of product's exports from Sri Lanka in value, 2017-2020, K $ US

During 2017-2020, India played a leading role in Sri Lanka's pepper exports in value terms, capturing 76.2% of total flows, with the remainder distributed across various other trading partners.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Sri Lanka in value, 2017-2020

Imports pepper to Sri Lanka

Imports in kind, t

The import market for pepper in Sri Lanka showed an unstable trend from 2017 to 2020. Imports peaked in 2018 at 2 333 tons, representing a 66.9% increase from the previous year. By 2020, imports had dropped sharply to just 6 tons, a 96.2% decrease compared to 2019. Overall, imports varied significantly, with a 405-fold difference between the high in 2018 and the low in 2020.

Annual dynamics of product's imports to Sri Lanka in kind, 2017-2020, t

From 2017 to 2020, Vietnam and Singapore dominated Sri Lanka's pepper imports in volume, together accounting for 80.9% of total flows, while other destinations made smaller individual contributions.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Sri Lanka in kind, 2017-2020

Imports in value, K $ US

Sri Lanka's pepper import market exhibited volatility during the observed period. Imports reached their highest value in 2018 at 12 447 thousand US dollars, a 54.2% increase from the prior year. By 2020, imports had plummeted to 12 thousand US dollars, a steep 97.6% decrease compared to 2019. This resulted in a dramatic 1 047-fold variation between the peak in 2018 and the low in 2020.

Annual dynamics of product's imports to Sri Lanka in value, 2017-2020, K $ US

During 2017-2020, Vietnam remained the dominant source for Sri Lanka's pepper imports in value terms, holding a 76.9% share of total flows, with the rest fragmented across other markets.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Sri Lanka in value, 2017-2020