Dutch Involvement in the Ceylon Cinnamon Trade
The Dutch took over the cinnamon trade by ousting the Portuguese, allying briefly with local kingdoms, then establishing a strict monopoly through the VOC. They professionalized production, controlled trade routes, and made cinnamon one of their most prized colonial exports - until the British eventually replaced them.
CEYLON CINNAMON HISTORY & HERITAGE
8/3/20252 min read
The Dutch played a central role in the cinnamon trade during their colonial rule of Sri Lanka (then Ceylon) from the mid-17th to the late 18th century, transforming both how cinnamon was cultivated and how it reached global markets.
Dutch Takeover and Monopoly
After defeating the Portuguese in Sri Lanka by 1658, the Dutch—through the Dutch East India Company (VOC) - seized control of the island’s coastal regions and quickly took command of the lucrative cinnamon trade. They established a strict monopoly, allowing only the Company to trade this prized spice and forbidding local farmers from independent sales.
The VOC enforced tight regulations: locals could grow only the crops the Company permitted, with cinnamon production tightly overseen. The Dutch relocated workers from other territories to support their operations and ensure a continuous, skilled labor force dedicated to cinnamon cultivation and peeling.
Plantation System and Production
Unlike the Portuguese, the Dutch were the first to establish systematic cinnamon plantations in the late 18th century, particularly around coastal cities like Negombo and Colombo. Dutch Governor Wilhelm Falck is credited with initiating the first large plantations around 1767. Prior to this, much cinnamon was harvested wild; plantation cultivation increased both supply and quality control.
The Dutch used local labor and brought in workers from the Indian subcontinent, organizing them into efficient teams for harvesting and peeling, which was a skilled task essential for maintaining product quality.
Maintaining the Monopoly
To keep prices high, the Dutch were so determined to guard their monopoly that if there was an oversupply or fear of price drops, they would burn or destroy large amounts of cinnamon rather than let it depress markets. Historical records tell of entire bales burned in Amsterdam, perfuming the air but denying competitors or the public any access to the spice.
The cinnamon trade became a huge source of profits for the VOC and an important part of colonial government revenue. The Dutch exported an estimated 8,000 to 10,000 bales of cinnamon annually, earning millions of guilders and supplying most European demand.
Infrastructure and Trade Networks
The Dutch implemented infrastructure improvements - building roads, lakes, and ports - to facilitate fast transport of cinnamon from plantations to shipping ports, most notably in Colombo. Cinnamon was shipped annually to both Asia and Europe, making Ceylon the global hub for true cinnamon export.
End of Dutch Control
The Dutch monopoly lasted until the late 18th century, when the British took over Ceylon in 1796, inheriting the colonial cinnamon trade structure and eventually ending the VOC’s dominance.
In summary: The Dutch involvement in the cinnamon trade turned Sri Lanka into a global cinnamon powerhouse by creating a tightly managed plantation system and an aggressive export-focused infrastructure, maintaining a state-enforced monopoly through both cultivation innovation and ruthless market control. This legacy profoundly shaped Sri Lanka’s economy, landscape, and its status as the foremost producer of Ceylon (“true”) cinnamon.
