This will "enhance the manufacturing and production skills of cinnamon processors and producers," he told a forum where the project was launched.
The Spice Council has secured financial and technical support from the United Nations Industrial Development Organisation and World Trade Organisation.
The council and the Export Development Board will also provide funding and land for the training facility in the south where most of the cinnamon is cultivated.
De Silva said the project will also help improve the image replica watches of cinnamon peelers and overcome a peeler shortage."Cinnamon has great potential to increase value-added exports. By 2020 this can be a one billion dollar in exports industry."
The cinnamon industry provides a livelihood for over 350,000 families in the southern districts of Galle, Matara, Hambanthota, Ratnapura and Kalutara, he said.
Commerce and industry minister Rishad Bathiudeen said the Export Development Board had set an ambitious target of earning export revenue of a billion US dollars from pure Ceylon cinnamon in the next few years by increasing value added exports and winning new markets.
Export earnings from cinnamon were about 13,394 million rupees in 2011.
The main market for Sri Lankan cinnamon is Mexico and Central America.
Annual cinnamon production is about 16,000 tonnes, Bathiudeen said.
"This initiative is the right step to secure our cinnamon's status in the global market place," Bathiudeen said.
"Upgrading our human resources is essential to enhance our value and achieve better cinnamon exports."
He said the island's exports markets have become "more challenging" due to slower economic growth in major economies.
"We are taking active steps to safeguard our exports. In the last few months we have had discussions with the private sector and have set up a committee on market diversification."