How Policy Gaps in Palm Oil Imports are Impacting Sri Lankan Coconut Growers

How Policy Gaps in Palm Oil Imports are Impacting Sri Lankan Coconut Growers

The Coconut Growers Association of Sri Lanka wishes to draw attention to a growing concern affecting our coconut sector and the livelihoods of thousands of growers across the country.

As highlighted in this week’s Sunday Times, regulatory loopholes in edible oil imports continue to create significant challenges for Sri Lanka’s coconut industry.

The continued inflow of crude palm olein and refined oil fractions into the domestic market at prices local small and medium-sized producers cannot compete with is putting pressure across the entire value chain. This is being felt by growers, millers, smallholders, and the many communities that depend on coconut cultivation for their income.

This goes beyond pricing.

It is about fairness. It is about policy consistency. And it is about protecting a national industry that plays an important role in rural livelihoods, food security, and export earnings.

Sri Lanka’s coconut growers and small and medium-sized producers continue to operate within a regulated framework while managing rising production, financing, and operational costs. When competing imports enter the market under different conditions, it creates an uneven playing field that directly affects farm-gate prices and grower incomes.

We believe there is a clear need for stronger coordination between the relevant institutions, greater transparency in approvals and import clearances, and policies that support fair competition while protecting both consumers and domestic producers.

Sri Lanka’s coconut industry has supported the country for generations. Its long-term sustainability depends on consistent policy, a level playing field, and timely action.

The Association remains committed to working constructively with policymakers, industry stakeholders, and relevant authorities to help ensure a resilient and sustainable future for Sri Lanka’s coconut growers.

🔗 Source: Sirimanna, B. (2026) ‘Palm oil loophole hurts Sri Lanka’s coconut industry’, Sunday Times (Sri Lanka), 24 May 2026. Available at: https://www.pressreader.com/sri-lanka/sunday-times-sri-lanka/20260524/282501485283353

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