Move to reconsider the ban on oil palm cultivation has triggered a heated debate among environmentalists, economists and plantation sector stakeholders, with critics warning that replacing rubber plantations with oil palm could weaken one of the country’s most valuable export industries while exposing the nation to long-term environmental and trade risks.

Environmental groups argue that the issue is no longer purely ecological, but a major economic policy question with implications for exports, foreign exchange earnings, rural livelihoods and Sri Lanka’s standing in international markets.

Sri Lanka banned oil palm cultivation in April 2021 through Extraordinary Gazette No. 2222/13 issued by former President Gotabaya Rajapaksa, citing environmental degradation, biodiversity loss, soil erosion and threats to water resources.

However, plantation companies are now reportedly lobbying for the reversal of the ban, arguing that oil palm offers higher short-term commercial returns compared to traditional plantation crops.

Environmentalists and policy analysts, however, caution that the long-term economic costs could outweigh the immediate profits.

Hemantha Withanage of the Environmental Justice Centre said Sri Lanka risks undermining a globally competitive rubber industry in pursuit of a commodity that generates comparatively limited national value.

“Rubber remains one of Sri Lanka’s strongest industrial export sectors. Replacing rubber with oil palm would be economically shortsighted because the downstream rubber manufacturing industry generates far greater export earnings, employment and industrial value addition, he said.

Industry statistics reveal a worrying decline in the rubber sector over the past four decades. Rubber cultivation has fallen from 171,126 hectares in 1982 to around 84,000 hectares in 2024, while production has dropped from 133,200 metric tons in 1980 to approximately 69,185 metric tons last year.

Despite shrinking cultivation, the rubber sector continues to deliver significant export revenue. Sri Lanka earned nearly USD 994 million from rubber exports in 2024, while rubber-based manufactured products generated more than USD 2.5 billion in export income.

The country also imports over USD million worth of raw and processed rubber annually to sustain domestic manufacturing demand, highlighting the strategic importance of maintaining local rubber production.

Analysts warn that further reductions in rubber cultivation could increase import dependency, weaken industrial supply chains and place additional pressure on foreign exchange reserves.

By contrast, Sri Lanka’s palm oil sector contributes relatively little to export earnings. In 2025, Sri Lanka imported 38,210 metric tons of palm oil and 33,696 metric tons of coconut oil, while the value of palm oil imports in 2023 stood at approximately USD 23 million.

Critics argue that oil palm cultivation mainly benefits plantation-level profitability rather than the broader national economy.

Thilak Kariyawasam of FIAN Sri Lanka said the environmental externalities associated with oil palm could eventually translate into significant economic costs.

“The industry’s impact on water resources, soil quality and ecosystems creates hidden financial burdens for the country. Pollution control, water management and biodiversity losses all carry long-term economic consequences that are often ignored in short-term investment calculations, he said.

Environmental groups also raised concerns that Sri Lanka could face reputational risks in export markets if environmentally controversial plantation policies are pursued.

The European Union, one of Sri Lanka’s most important export destinations and the provider of GSP+ trade concessions, has tightened regulations linked to deforestation and environmental sustainability.

By Ifham Nizam

Talawakelle Tea Estates PLC has secured internationally recognised organic certification. A member of the Hayleys Plantations Sector and one of Sri Lanka’s premier Regional Plantation Companies, this milestone enables the Company to market certified organic teas under its renowned Great Western and Logie garden marks.

The certification spans three major global standards: the EU Organic Regulation of the European Union, the National Organic Program (NOP-US) of the United States Department of Agriculture, and the Japanese Agricultural Standards (JAS) for organic products. With this achievement, Talawakelle Tea Estates is now positioned to supply premium organic teas to international markets that demand the highest standards of certification, traceability, and product integrity.

“We are proud to reach this significant milestone after more than four years of dedicated effort to build a fully compliant organic cultivation and processing system that meets stringent international standards. This achievement shows the strength of our partnerships with the Tea Research Institute (TRI) and internationally qualified consultants and, most importantly, the commitment and collaboration of our estate and corporate teams. Together, we have established a robust and sustainable organic management framework that will support our long-term vision.” Talawakelle Tea Estates, Director / CEO, Nishantha Abeysinghe added.

To ensure consistent compliance with international standards, Talawakelle Tea Estates appointed dedicated full-time personnel from its estate teams and corporate sustainability division to oversee and manage every stage of the organic value chain – from cultivation to final manufacture.

The Company has also developed an end-to-end organic cultivation and processing management system covering the full value chain – from field-level practices to final manufacture – ensuring a structured and carefully monitored approach to organic tea production.

To safeguard product integrity and eliminate the risk of cross-contamination with conventional teas, the Company has designated low-risk fields exclusively for organic cultivation and dedicated the Logie factory entirely to organic tea production, minimising the risk of cross-contamination.

Following a series of rigorous audits, Talawakelle Tea Estates has secured full certification and is now set to launch its certified organic tea range globally under the prestigious Great Western and Logie garden marks names bringing together heritage and sustainability.

This achievement marks an important step in the Company’s broader journey to build a more sustainable, nature-based product portfolio in response to growing global demand. By combining strong garden identities with internationally recognised organic standards, Talawakelle Tea Estates continues to strengthen its position in the premium tea segment.

The southern coast has long held a timeless allure, but few destinations balance accessibility and indulgence quite like Bentota. Just a short journey from Colombo, this celebrated coastal town offers the ideal setting for a spontaneous yet immersive weekend escape — where golden beaches, river life, and slow luxury come together effortlessly.

Now, Nyne Hotels Luxe invites guests to experience Bentota through a carefully curated weekend retreat at ANUPRIT and ANUGRAH, the first LUXE properties within the Nyne portfolio.

Designed for discerning travellers seeking both relaxation and meaningful experiences, the Nyne LUXE Weekend Escape begins on Saturday morning with a warm welcome and a seamless transition into coastal living. Guests are treated to curated dining experiences including lunch, sunset sundowners, and dinner, complemented by a 10% saving on all beverages throughout the stay.

Sunday unfolds at a gentler pace, with breakfast followed by access to a thoughtfully designed range of leisure experiences including pickleball, beach tennis, a beach gym, and moments of complete relaxation by the ocean.

Beyond the properties themselves, Bentota offers guests the opportunity to explore some of Sri Lanka’s most distinctive coastal experiences — from tranquil mangrove boat rides and turtle conservation initiatives in nearby Kosgoda, to the rich artistic heritage of Ambalangoda’s famed mask craftsmanship.