News
Lanka’s coconut industry faces major setback as US slaps 30% tariff
The Ceylon Chamber of Coconut Industry (CCCI) has issued an urgent appeal to the government in response to the United States’ decision to impose a 30% tariff on coconut-based products from Sri Lanka, effective August 1, 2025.
“The move threatens to upend one of the country’s most valuable export sectors, which currently generates over USD 857 million in annual revenue, and risks pushing thousands of rural livelihoods into uncertainty,” a CCCI has said in a media statement.
The United States is Sri Lanka’s single largest buyer of coconut-based products, accounting for more than 20% of the sector’s exports, valued at roughly USD 160 million each year. According to the CCCI, the new tariff all but destroys Sri Lanka’s price competitiveness in the US market. Competing suppliers such as the Philippines, Vietnam, and India enjoy preferential trade access, meaning Sri Lankan products, despite their globally renowned quality, will be sidelined on cost alone.
“This isn’t just a policy shift. It’s a devastating blow to an entire industry that Sri Lanka has worked hard to build,” said Jayantha Samarakoon, Chairman of the CCCI. “Our products are recognized globally for their purity, taste, and nutritional value. But no matter how good they are, a 30% tariff makes them unaffordable for buyers. We will be priced out of the market, not because of quality, but because of cost. While we acknowledge the reduction from the originally proposed 44%, even at 30%, the impact remains deeply damaging to our export competitiveness and to the hundreds of thousands of rural livelihoods tied to this industry.”
The export basket at risk includes a wide range of value-added goods: desiccated coconut, virgin and refined coconut oil, coconut milk and cream, coconut water, coir fibre products, activated carbon, and husk-based growing media. Many of these are premium niche exports that Sri Lanka pioneered in the global market, but buyers will now have little choice but to shift sourcing to cheaper destinations.
The impact, however, goes far beyond trade statistics. Over 800,000 Sri Lankans depend on the coconut industry for their livelihoods, including smallholder farmers, processors, factory workers, logistics providers, and exporters. More than 150,000 direct jobs in the manufacturing and processing sectors are now under immediate threat. A sudden drop in export demand could flood the domestic market with unsold produce, pushing down farm gate prices and cutting off income streams for rural families already grappling with inflation and rising production costs.
The CCCI also warns of broader economic fallout. A downturn in coconut exports could trigger a collapse in investor confidence and foreign direct investment, particularly as Sri Lanka works to position itself as a reliable, competitive sourcing destination under its ongoing IMF reform program. With other coconut-producing countries offering stronger policy support and lower-cost structures, there is a real risk of local industrialists shifting operations abroad — taking jobs, capital, and long-term opportunity with them.
In light of this, the Chamber is calling for urgent and coordinated government action to safeguard the sector. It has urged immediate engagement with the Office of the US Trade Representative to explore options for tariff relief or exemptions. The Chamber also called for a renewed push to secure bilateral trade agreements that ensure fair access to key markets, alongside targeted support to help exporters absorb short-term shocks and improve long-term competitiveness.
“This is no longer just an economic issue. It’s a national priority,” Samarakoon stressed. “If we allow this industry to fall through the cracks, we risk losing not only a major export earner, but a vital pillar of rural resilience, food security, and industrial growth. The time to act is now.”
News
UNEP support pledged to strengthen Sri Lanka’s Environmental Priorities
A special bilateral discussion was held on Thursday (02) morning at the United Nations Conference Centre (UNCC) in Bangkok, Thailand, between the Deputy Minister of Environment, Anton Jayakody, and regional representatives of the United Nations Environment Programme (UNEP).
The discussion began with an appreciation of the long-standing relationship between Sri Lanka and UNEP, particularly highlighting Sri Lanka’s role as a UNEA 8 Bureau member and a key partner in Global Environment Facility (GEF) projects. The meeting focused extensively on securing UNEP’s technical
and financial support to advance several of Sri Lanka’s national environmental priorities.
During the meeting, the Deputy Minister expressed Sri Lanka’s gratitude for the guidance provided by UNEP throughout the adoption process of the UNEA Youth Resolution. He outlined the national program currently being designed in Sri Lanka in alignment with the resolution. Under this initiative, attention was drawn to securing UNEP’s technical assistance, capacity-building support, and access to global funding mechanisms.
These resources will be utilized to formulate a “National
Environmental Literacy Index” to assess the environmental awareness of youth, establish “Youth Environmental Committees” spanning from the national to grassroots levels, set up university youth forums, and implement environmental promotion programs driven through sports
In addition, Sri Lanka requested UNEP’s assistance in upgrading its national air quality monitoring systems, enhancing data analysis, and developing policy guidelines.
The Deputy Minister also sought policy advisory services on Extended Producer Responsibility (EPR), technical expertise in plastic waste lifecycle management, and support for pilot projects aimed at minimizing single-use plastics and transitioning toward a circular economy.
Furthermore, the Deputy Minister noted that measures have been taken in collaboration with the Ministry of Transport to expedite sustainable e-mobility projects. He added that Sri Lanka anticipates UNEP’s support for the “Sustainable Cities Integrated Programme” under the country’s GEF 9 national
strategies. Reaffirming Sri Lanka’s active commitment to regional initiatives that foster environmental knowledge sharing among South Asian nations, it is expected that UNEP’s technical intervention during the upcoming GEF 9 financial cycle will continue to support Sri Lanka’s journey toward environmental resilience.
News
CIABOC to question Harak Kata on Rs. 200 mn bribery allegation
He is the only detainee at old Tangalle prison
The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) probing bribery allegations pertaining to the recent arrest of attorney-at-law Rakitha Rajapakshe, former SJB Horana organiser Charitha Abeysinghe and another person is expected to question drug dealer Nadun Chintaka Wickremaratne alias Harak Kata being held under the Prevention of Terrorism Act (PTA).
The CIABOC arrested Rakitha and Charitha Kumara Wasantha Abeysinghe and former Director of Airport and Aviation Services Warushahanndige Aruna Sri Chathuranga on 25 June over the Rs 200 mn bribery allegation. Produced before the Colombo Chief Magistrate court on the same day, they were remanded until 3 July.
Sources familiar with the case told The Island that Wickremaratne arrested in Madagascar on 1 March 2023 was brought to Sri Lanka on 14 March 2023, and after preliminary investigations he was detained at the old Tangalle prison. Wickremeratne has been accused of running a major narcotics smuggling operation.
Wickremaratne’s lawyer Udul Premaratne, having visited Wickremeratne, sought the intervention of the Human Rights Commission of Sri Lanka to ensure the latter’s safety.
As many as 90 police (terrorist Investigation Department) and the Special Task Force (STF) have been assigned to the Tangalle old prison where Wickremaratne remains the sole detainee.
The CIABOC, in a statement posted in Sinhala on its website on 25 June said that arrested persons received the money after having initially asked for Rs 500 mn and then reduced it to Rs 200 mn. The Rs 120 mn allegedly received has been described as an advance.
Sources said investigators would question Wickremaratne over his wife’s claim that she had paid Rs. 120 million.
In terms of the PTA, the detention orders can be issued only by the Defence Minister. At the time Wickremaratne was brought to Colombo, Ranil Wickremesinghe held the defence portfolio. According to legal sources, when the President also held the defence portfolio, the responsibility for issuing the detention orders was relegated to the Defence Secretary.
Maj. Gen. Kamal Gunaratne who served as the Defence Secretary during that period.
Sources said that Wickremaratne’s wife was yet to come back and his parents and a brother were believed to be the only visitors except for lawyers. One of the crucial issues was how Wickremaratne had communicated with his wife living abroad, sources said.
By Shamindra Ferdinando
News
Petrol, diesel prices could be reduced by Rs. 141 and Rs 126 per litre: Udaya
Pivithuru Hela Urumaya (PHU) leader and former Petroleum Minister Udaya Gammanpila yesterday (2) claimed that the price of a litre of Octane 92 petrol and auto diesel could be reduced by Rs 141 and Rs 126, respectively.
The former Energy Minister said that Rs 20 per litre price reduction declared by the Ceylon Petroleum Corporation (CPC) in respect of Octane 92 petrol and Rs 25 drop in litre of auto diesel price proved that the government fleeced the public.
Earlier, Samagi Trade Union Alliance convenor Ananda Palitha claimed that the price of litre of Octane 92 petrol and auto diesel could be reduced by Rs 115.
A litre of Octane 92 is sold at Rs 414 and a litre of auto diesel at Rs 382.
Pointing out that the CPC hadn’t reduced Octane 95 petrol and Super Diesel at least nominally, the former parliamentarian said that the CPC could reduce them by Rs 155 and Rs 149, respectively. A litre of petrol Octane 95 is sold at Rs 495 and a litre of Super Diesel at Rs 478.Gammanpila pointed out that the government had sharply increased prices when the Iran war entered the 12th day having claimed that that it had stocks for 35 days. (SF)
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