News
Slump in imports trigger surge in coconut oil prices
By Suresh Perera
With the drastic drop in imports, coconut oil prices in the market have surged to a new high as local production is grossly insufficient to meet the annual consumption of around 200,000 metric tons, industry officials said.
In 2020, local coconut oil production was a negligible 20,000MT, which translated into a yawning gap that had to be bridged by importing 180,000MT, they said.
“This has been the position over the past few years as dominant imports dwarfed local supplies”, they pointed out.
The ban on the import of palm oil has also compounded the issue as customers will now have to depend wholly on coconut oil resulting in inevitable pressure on the demand curve, they pointed out.
Prices have soared with a 750ml bottle of coconut oil fetching Rs. 550-600 in the local market, they said, while predicting the upward trend to continue due to short supply.
The local production of coconut oil fell by the wayside as high prices of nuts was a challenge to compete with imports, says M. L. D. Niroshana, Director-General of the Coconut Development Authority.
On an average price of Rs. 85 each, it requires nine to ten nuts to extract a litre of coconut oil, and they need to sell a 750ml bottle for around Rs. 500 to make a small profit. However, this was not feasible when imports were available at a more competitive price, he noted.
Earlier, a 750ml bottle of coconut oil was selling at anything between Rs. 320-380. With the slump in imports following the aflatoxins controversy, prices have zoomed as supply can no longer meet the demand, market sources said.
Consignments of palm oil imported before the ban was announced are still available in the marketplace, but after existing stocks are lapped up, there will be more pressure exerted on the demand for coconut oil that’s bound to see prices going through the roof, they warned.
“Market forces are at play because there existed a big gap between imports and local production of coconut oil. With many importers now reluctant to order fresh stocks due to uncertainty over contamination fears, and coupled with the ban on palm oil, the market is grappling with the demand for this essential consumer commodity”, Niroshana outlined.
Sri Lanka’s production in 2020 was 2,760 million nuts, which fell short of the 3,000 million target. The figure was envisaged to reach 3,600 million at peak. During October, November, December and January, there’s a shortage of nuts, but production picks up with an increase in yield during May-August.
“There is neither a short-term solution nor a question of expediting the production process as it takes 10 years for coconut trees to yield. The government grants a subsidy for fertilizer and water to growers in a bid to push up production”, Niroshana elaborated.
As in any business, private millers are also driven by profits. In the short-term, the price of nuts cannot be expected to dip to Rs. 35-45 each for millers to make a margin by selling coconut oil, the Director-General said.
As long as nut prices remain high, local coconut oil will also be costly as they go hand in hand, he pointed out. “More millers will be encouraged to take to extracting coconut oil if imports are limited and market conditions and prices are good”.
On the other hand, the export of copra is more lucrative as prices are attractive in foreign markets. This segment earned an export income of US$ 661 million in 2020, Niroshana further said.
In a bid to mitigate the ballooning prices in the market, the government has permitted only the state-owned BCC Lanka to import desiccated coconut up to a maximum of 13,000MT per month under a Special Commodity Levy (SCL) of one rupee per kilo, industry officials said.
On the recommendation of the Industries Ministry, the consignments will be allowed for a period of three months with effect from April 28, 2021, they said.
The stocks are likely to be imported from Indonesia instead of India because of the raging coronavirus pandemic there, they noted.
According to a Finance Ministry directive, a SCL of Rs. 300 per kilo will be imposed on importers of desiccated coconut.
Retail coconut prices still remain relatively high with each fetching anything between Rs. 85-100 depending on the size, market sources said.
A coconut grower in Nattandiya said the average farmgate price for nuts has now dropped to Rs. 50-55 each. In the case of small nuts, two are sold for the price of an average nut.
He said the average farmgate price was Rs. 75 each about one and a half months ago when retail market prices shot up to Rs. 100-125 per nut.
Prime Minister Dr. Harini Amarasuriya emphasized that addressing the drug issue in the country must be treated as a national priority, highlighting that it must deliver results at the ground level.
A meeting to brief the Prime Minister on the National Strategic Plan for the Management, Treatment and Rehabilitation of Persons with Substance Use Disorders (SUD) 2026–2030 was held with the participation of officials from the Ministry of Health and Mass Media and other key stakeholders on 13th of March at the Temple Trees.
The discussion focused on the proposed national strategy developed to address the growing health, social and economic challenges associated with substance use disorders in Sri Lanka. The strategic plan aims to strengthen prevention, treatment, rehabilitation and reintegration services through a coordinated and evidence-based national approach.
During the meeting, attention was drawn to existing gaps in early identification of substance use disorders, continuity of care, community-based follow-up and reintegration of recovering individuals into society. The plan proposes several key interventions, including strengthening screening and symptomatic treatment at primary healthcare and outpatient levels, improving hospital-based treatment and follow-up services, expanding residential rehabilitation facilities, and enhancing community-based rehabilitation and relapse prevention programmes.
Special emphasis has also been placed on providing targeted support for vulnerable groups, including children and adolescents, pregnant women, mothers with children and prison inmates.
Speaking on the importance of strengthening the national response to drug issues, the Prime Minister Dr. Harini Amarasuriya noted that the drug menace has evolved into a serious social crisis that threatens social stability and security of families and the nation as a whole highlighting that law enforcement and rehabilitation in this regard must be given equal priority.
The Prime Minister further underscored the importance of including public awareness initiatives and responsible media reporting as key components of the national strategy.
The meeting was attended by the Secretary to the Prime Minister Pradeep Saputhanthri, Secretary to the Ministry of Health Dr. Anil Jasinghe, officials from the Department of Prisons, Bureau of Rehabilitation, Sri Lanka Police Ministry of health, Ministry of Public Security and Parliamentary Affairs, Ministry of Justice and National Integration ,Ministry of Defense, Ministry of Education, Ministry of Women and Child Affairs and other relevant department and ministries.
[Prime minister’s Media Division]
In light of the prevailing geopolitical developments in Middle East, the petroleum product supply chain has been adversely affected. At the same time, the demand for fuel has increased abnormally, resulting in a depletion of the country’s existing fuel stock. Therefore, it has become necessary to carefully manage the available fuel reserves in order to sustain the nation’s economic activities.
Furthermore, it has recently been observed that certain groups have been illegally purchasing fuel in excessive quantities. The Government of Sri Lanka intends to prevent such improper consumption and ensure an uninterrupted fuel supply for the day-to-day needs and economic activities of the general public.
Accordingly, a QR code system will be implemented with effect from 06.00 a.m. on 15.03.2026.
Fuel will not be issued by any operating filling station in the country without a valid QR code from 06.00 a.m. on 15.03.2026.
Steps to Obtain the QR Code
- Users who have already registered for the QR Code
- Users whose vehicle ownership and registered mobile number remain unchanged since their initial registration may download their QR Code from the website https://fuelpass.gov.lk/ starting from midnight on 14.03.2026, using the ‘Vehicle Login’ button.
- Users whose vehicle ownership or registered mobile number has changed since their last registration are required to re-register their details through the website https://fuelpass.gov.lk/ starting from 6.00 a.m. on 15.03.2026, using the ‘Vehicle Registration’ button.
- Users who have not previously registered for the QR Code and users with newly registered vehicles at
the RMV - Registration can be completed starting from 06.00 a.m. on 15.03.2026 through the
website https://fuelpass.gov.lk/, using the ‘Vehicle Registration’ button.
The number of litres allocated for each category of vehicle is stated below.
A special fuel issuance system will be implemented for vehicles required to support national production and essential services.
| Vehicle Class | Capacity control volume for fuel pass
(L) |
| Buses | 60 |
| Motor cycle | 5 |
| Van | 40 |
| Motor car | 15 |
| Motor Lorry | 200 |
| Land Vehicles | 25 |
| Three Wheeler | 15 |
| Special Purpose Vehicle | 40 |
| Quadricycle | 5 |
[Sri Lanka Transport Board will issue fuel to the private buses].
The National Water Supply and Drainage Board (NWSDB) on Friday said the largest groundwater source discovered in Sri Lanka so far had been identified during tube-well drilling near the Pitabeddara Police Station.
Indrajith Gamage, geologist in charge of the Southern Province, said the source recorded a continuous flow of about 10,000 litres (10 cubic metres) per minute, marking the first instance in the country where a groundwater source of that magnitude had been found.
He noted that the previous largest groundwater source was discovered in the Madhu area, which recorded a flow of about 7,000 litres per minute.
According to the NWSDB, the tube well was drilled following geological studies of rock layers and the identification of underground water through fractures in rock strata using specialised technical instruments.
The Board said steps would be taken to distribute water from the newly discovered source to residents facing shortages in Pitabeddara, Morawaka and surrounding areas.
‘Gruesome’ war bets fuel calls for crackdown on prediction markets
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Addressing the drug issue in the country must be treated as a national priority – PM
QR code system will be implemented for fuel with effect from 06.00 a.m. today (15th)
Showers will occur at several places in the Western, Sabaragamuwa, Central, North-western and Uva provinces and in Galle, Matara, Mannar and Anuradhapura districts after 2.00 pm.
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