Business

Decoding Oil Palm: Myths vs Truths

Published

4 years ago

2022/01/26

Sahan Weerasooriya

Smallholder representative Nimal Wijesinghe

By Anumita Ghosh

The contents in this article revolves round a scientific research-backed study on oil palm cultivation in the aftermath of the recent ban in Sri Lanka.

Oil palm is considered to be one of the most competitive vegetable oil crops in terms of productivity. The crop provides five times as much vegetable oil per hectare compared to alternative crops, such as coconut, and sequesters more carbon per hectare than tea and coconut. According to studies conducted by Sri Lankan scientists, per litre of palm oil requires lesser fertilisers and less water than coconut, dry rubber or tea. The crop primarily uses rainwater for cultivation, and there is no evidence of palm oil plantations causing groundwater depletion. Yet, despite a wide range of virtues, the Sri Lankan government has decided to ban palm oil production, ordering replacement of oil palm trees with rubber plantations, on grounds of unfavourable environmental and social impacts.

Myths & Truths

Unfortunately, palm oil has been at the receiving end of a perception that is nurtured based on unfavourable emotions and not facts around it. Claims of oil palm plantations leading to widespread deforestation and damage to ecosystems have hardly any transparent scientific research backing them. In Sri Lanka, oil palm does not replace forest but other plantation crops, primarily rubber or coconut. Therefore, its biodiversity performance needs to be compared with these crops, and as found in various studies, the differences in biodiversity between oil palm, rubber, tea and coconut plantations are neither significant nor conclusive.

In an attempt to break the myths around palm oil and its production, Solidaridad has released the “Myths and Truths of Oil Palm”, a research-based scientific study that provides information and assessments on palm oil through an in-depth literature review on research findings by over 15 leading scientists from top universities and research institutions across Indonesia, Malaysia, India and Sri Lanka. A result of extensive research, the publication vividly portrays the social, economic and environmental impacts of oil palm production.

Research highlights

Sri Lanka annually imports 180,000 to 220,000 MT of vegetable oil. This can be met with 50,000 ha of oil palm or 271,000 ha of coconut. Oil palm yields 4 to 5 times oil per ha.

Oil palm plantations have served Sri Lanka for over 54 years, starting around 1968 Palm oil is in many aspects healthier than coconut oil Currently, profits generated per ha/ year; Oil Palm LKR900,000, Coconut LKR280,000, Rubber LKR70,000, Tea LKR45,000 The daily wages per month for workers; Oil palm worker LKR30,000 – LKR50,000, Tea estate worker LKR25,000, Rubber tapper LKR18,000

No evidence has been found of soil and water resource degradation in the oil palm growing estates in Sri Lanka

A worldwide study which included Sri Lanka has shown that in Sri Lanka, the water footprint of coconut oil 10,548 m3water/ton, palm oil 3,946 m3water/ton.

Setting the tone

The launch was organised on 19 January 2022 in a hybrid event with scientists, government ministries and departments, research institutes, private sector, community organisations, media and other participants from Sri Lanka joining the event physically. Panelists and participants from India, Indonesia, Malaysia, the Netherlands and other parts of the world attended the event virtually.

Among the panelists, Dr. Shatadru Chattopadhayay, Managing Director, Solidaridad Asia, began the session on a strong and positive note, highlighting the socio-economic impacts of the crop.

“Stop condemning palm oil while adulating other oils, especially when we know that palm oil provides livelihoods to thousands of communities,” he mentioned, setting the tone of the session.

Professor Maja Slingerland from the Wageningen University of the Netherlands, who is also the study reviewer and editor, spoke at length on the impacts and opportunities of oil palm cultivation in Asia.

Research scholar, Dr. Ranjith Mahindapala, presented the audience with the key findings and recommendations from the publication. The panelists also included Manjula De Silva, Ceylon Chamber of Commerce, Sri Lanka; Mrs. Musdahlifah Machmud, Coordinating Ministry for Economic Affairs, Indonesia; Atul Chaturvedi, Solvent Extractors Association, India; Dr. Ahmad Parveez Ghulam Kadir, Malaysian Palm Oil Board, among others.

One of the panelists, Ms. Margot Logman, Secretary General of the European Palm Oil Alliance (EPOA), delivered an argument through her presentation stating: “Only alternative to palm oil is sustainable palm oil”. She urged for an urgent call to action in support of oil palm cultivation.

“We need to tell the complicated truth about sustainable palm oil, not a simple story. We need to win the trust of consumers with facts, and not emotions, in support of palm oil in Europe,” Logman said.

Logman’s call for a perception makeover of the crop was echoed in the smallholder representative Nimal Wijesinghe’s address to the audience. The president of the Haritha Derana Smallholder Association in Sri Lanka narrated how the small farmers in the region had developed misconceptions about oil palm primarily because they did not grow it and were not aware of the truths about the crop. “On learning about the higher profit and income of oil palm cultivation over other crops, they asked me: Can’t we grow this crop?” he mentioned.

Wijesinghe’s appeal to the authorities marked the perfect denouement to the session as he urged, “Give this crop to the smallholder; give it to the person who owns half an acre of land…the person who can grow only 25 trees. That would be the real Samurdhi (prosperity; also, the name of a government welfare scheme for low-income families in Sri Lanka).”

Anumita Ghosh is a Senior Editor and communication professional at Solidaridad Asia – an international sustainability organisation, and can be reached at anumita.ghosh@solidaridadnetwork.org

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Business

Resilience amidst geopolitical headwinds: Sampath Bank posts Rs 6.2 bn PAT in Q1 2026

Published

9 hours ago

2026/05/15

Thilina Walpola

Sampath Bank reported Total Operating Income of Rs 28.5 Bn for the quarter ended 31st March 2026, supported by steady growth in Net Interest Income (up 5%) and Net Fee and Commission Income (up 28%) year-on-year.

Notwithstanding this performance, Profit After Tax (PAT) declined by 26% to Rs 6.2 Bn, due to significantly higher impairment provisions of Rs 4.5 Bn recognised in response to the continued expansion of the loan book and taking into account the evolving geopolitical conditions. Additionally, one-off gains from the disposal of Treasury Bills and Bonds moderated to Rs 0.7 Bn in 2026, a decrease of Rs 2.0 Bn compared to the elevated levels recorded in the previous year.

The Bank’s total asset base crossed the Rs 2 Tn milestone for the first time, representing a significant achievement supported by strong loan growth of Rs 127 Bn in the first quarter of 2026.

The Sampath Group delivered a Profit Before Tax (PBT) of Rs 9.4 Bn and a Profit After Tax of Rs 6.8 Bn for the quarter ended 31st March 2026.

Fund Based Income

The Bank reported total interest income of Rs 46.5 Bn, reflecting year-on-year growth of 6%. This increase was primarily driven by the expansion of the loan portfolio during the reporting period and in the latter part of the previous year, compared to the negative loan growth recorded in the corresponding period of the previous year, as well as an upward movement in the Average Weighted Prime Lending Rate (AWPLR).

Interest expense for the quarter also increased by 6% to Rs 26.4 Bn, reflecting growth in both deposit and borrowing portfolios. As a result, Net Interest Income (NII) stood at Rs 20.1 Bn, an increase of 5% compared to the corresponding quarter of the previous year.

The Net Interest Margin (NIM) contracted marginally by 2 basis points to 4.09%, from 4.11% reported for 2025. This decline was primarily attributable to lower yields across the Bank’s investment portfolio, reflecting reduced rates in the Government Securities portfolio compared to the previous period.

Non-Fund Based Income

During the three-month period ended 31st March 2026, the Bank’s total non-fund based income declined marginally by 4% to Rs 8.3 Bn, mainly due to a decrease in capital gains from the sale of Treasury bills and bonds. Capital gains declined from Rs 2.7 Bn in 1Q 2025 to Rs 0.7 Bn in 1Q 2026, representing a year-on-year decline of 75%.

Net fee and commission income, driven by credit expansion, higher trade volumes and increased card usage, recorded a robust growth of 28% across all income channels, reaching Rs 6.1 Bn by the end of the quarter.

Business

CAHM – 7 Star Junior Chef Competition Season 01’s Grand Finale

Published

9 hours ago

2026/05/15

Thilina Walpola

The Grand Finale of the CAHM – 7 Star Junior Chef Competition – Season 01 was successfully held on 9th of May at the CAHM premises, SLIIT Main Campus, Malabe, celebrating the talent, creativity and passion of young aspiring chefs from across Sri Lanka.

Organised by the Colombo Academy of Hospitality Management (CAHM) at SLIIT, with 7 Star by Serendib Flour Mills as Title Sponsor, the national-level competition provided students aged 13 to 16 with a platform to explore culinary arts, gain practical exposure and discover future opportunities in hospitality.

The Colombo Academy of Hospitality Management (CAHM), Sri Lanka’s largest private hospitality, foods, tourism, and events education provider, in partnership with the William Angliss Institute, (RTO – 3045) Australia and operating within the SLIIT premises Malabe. Through this partnership, CAHM delivers internationally competitive training in culinary arts, offering students an exceptional learning experience that prepares them for opportunities in Sri Lanka and on the global stage.

The competition’s journey began with an encouraging islandwide response, attracting over 5,000 inquiries from aspiring participants, parents and schoolteachers, with over 1,400 applications submitted. Following a careful evaluation process, 204 applicants were shortlisted for the competition, progressing through structured rounds that offered hands-on culinary exposure, industry insights and preparatory guidance, before the final 10 contestants were selected to compete at the Grand Finale.

Following several competitive rounds, 10 finalists secured their places at the Grand Finale. The finalists were Bareerah Bariq of Muslim Ladies College Colombo 04, Nikhel Venuk Elisha of St Joseph’s College Colombo 10, Anooshka Vigneswaran of Girls High School Kandy, Prabhasha Muthubhashini Gunawardhana of Kalutara Balika Vidyalaya, Shamha Nazim of Ilma International Girls’ School Colombo 05, Sithuki Siyansa Methsandi of Buddhist Ladies College Colombo 07, Sandaruwani Nisansala of Moratu Maha Vidyalaya Senuth Insanda of Nalanda College Colombo 10, Pinidu Senuranga Fernando of Boys’ Model School Malabe, and Poorna Bandara Tennakoon of Royal International School Kurunegala.

Business

Mahogany Masterpieces launches new digital flagship

Published

9 hours ago

2026/05/15

Thilina Walpola

Website Launched

Mahogany Masterpieces (Pvt) Ltd, Sri Lanka’s pre-eminent luxury solid wood furniture house and turnkey interior solutions provider, today announces the launch of its new digital flagship at www.mahogany.lk, alongside the introduction of what the company believes to be the most sophisticated AI Concierge deployed by any luxury brand in Sri Lanka.

The launch marks a defining chapter in the brand’s fifty-two-year history: a company founded on uncompromising craft, now presenting itself to the world with a digital presence that matches the standard of its showroom. The new website consolidates for the first time the full breadth of what Mahogany Masterpieces offers; bespoke solid wood furniture across beds, dining, lounge, and occasional collections; end-to-end interior solutions from concept to completion; the pioneering Furniture Spa restoration and care service; and a 46-year export programme now serving 16 countries.

Sri Lanka’s Most Sophisticated Luxury AI Concierge

The centrepiece of the new digital experience is the MM AI Concierge. A custom-built, brand-trained conversational assistant deployed natively across the website. Available at any hour and on any page, the Concierge carries deep knowledge of Mahogany Masterpieces’ full product range, materials, finishes, interior services, export capabilities, and brand heritage. It responds with the warmth and precision of the MM showroom team, handling enquiries about the Piano Finish, custom fabrication timelines, Furniture Spa services, and interior projects around the clock.