Business
Decoding Oil Palm: Myths vs Truths
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
Business
SriLankan Airlines Enhances Australia Connectivity with 14 Weekly Flights
11 March 2026; Colombo – SriLankan Airlines is set to increase its weekly service between Colombo and Melbourne to 10 flights, effective from 2 August 2026, with the addition of three more scheduled flights in response to growing demand and evolving market dynamics. The expansion reinforces the airline’s commitment to strengthening its footprint in Australia, recently identified as one of the fastest-growing inbound tourism markets to Sri Lanka, driven by leisure travel and a rising volume of visits by family and friends.
The newly added flights will operate every Tuesday, Thursday and Sunday, departing Colombo as UL608 at 14:10 hrs and arriving in Melbourne at 04:30 hrs the following day. The return service, UL609, will depart Melbourne every Wednesday, Friday and Monday at 06:00 hrs, arriving in Colombo at 12:15 hrs the same day, offering convenient onward connections across the airline’s network. The schedule is designed to maximise time spent in Sri Lanka for leisure travellers while enhancing connectivity for passengers travelling onwards to India via Colombo.
In addition to the new frequencies, the airline will continue operating its daily service, UL604, departing Colombo at 00:20 hrs and arriving in Melbourne at 14:40 hrs, with the return service UL605 departing Melbourne at 16:10 hrs and arriving in Colombo at 22:25 hrs. These services provide seamless connectivity to key destinations across India and beyond.
This addition of flights will provide Sri Lankans with better options when choosing flights between the two countries and enable them to plan their travel more conveniently. The increased frequency will be especially beneficial for the Sri Lankan diaspora living in Australia, providing greater flexibility to visit family and friends while maintaining strong connections with their homeland.
Additionally, Sri Lankan students studying in Australia will find these enhanced services advantageous, as the expanded schedule accommodates academic calendars and holiday breaks, making it easier to travel home and return to their studies. Overall, improved connectivity supports both the expatriate community and students by offering more convenient and accessible travel options tailored to their needs.
The increased frequencies will further strengthen Colombo’s role as a regional hub, enabling Indian travellers to seamlessly connect via Sri Lanka to Melbourne, with convenient schedules and efficient onward connections. For more information and bookings, visit www.srilankan.com or follow us on our social media.
Business
Nestlé Lanka marks 120 years of nourishing Sri Lankan families and livelihoods
Nestlé Lanka Limited this year marks 120 years of operations in Sri Lanka, highlighting a century-long presence that has extended beyond food manufacturing to supporting farmers, communities, youth employment and environmental sustainability.
Established in 1906, the company has grown into one of Sri Lanka’s leading food and beverage manufacturers, today producing more than 90% of the products it sells locally. Over the decades, Nestlé Lanka has built a strong domestic footprint through local sourcing, long-term farmer partnerships and continued investment in manufacturing.
Through widely recognised brands such as Nestomalt, Milo and Maggi, the company has become a familiar presence in Sri Lankan households, offering products designed to meet local nutritional needs. Many of its products are fortified with micronutrients aimed at improving dietary intake, while brands such as Milo and Nestomalt have also supported youth sports and active lifestyles in the country.

Nestlé Lanka’s engagement with local agriculture has also played a role in strengthening rural livelihoods. The company works closely with dairy and coconut farmers, providing technical assistance, skills development and reliable market access as part of its responsible sourcing efforts.
The company has also expanded programmes aimed at improving youth employability. Through the “Nestlé Needs YOUth” initiative, young Sri Lankans are provided with access to training, learning and career opportunities. Partnerships with organisations such as BConnected have also helped promote inclusive employment opportunities for people with disabilities.
Sustainability has become an increasingly central focus of the company’s operations. Nestlé Lanka’s manufacturing facility in Kurunegala operates on 100% renewable electricity, while a biomass boiler commissioned in 2024 has helped reduce carbon emissions from manufacturing. The company aims to achieve net-zero carbon emissions by 2050.
Efforts to reduce environmental impact have also extended to packaging. Nestlé Lanka pioneered the shift from plastic to paper straws in aseptic beverage cartons in 2019 and supported the establishment of Sri Lanka’s first recycling plant for such cartons. The company aims to become fully plastic neutral by 2026.
Chairman and Managing Director Bernie Stefan said the milestone reflects the long-standing trust Sri Lankan consumers have placed in the company and the partnerships it has built across the country over generations.
By Sanath Nanayakkare
Business
Over a century of Business History goes to the National Archives
The Ceylon Chamber of Commerce has formally handed over its historical records to the National Archives Department of Sri Lanka, placing over a century of the nation’s commercial history into the care of the country’s official custodians of heritage.
The historical archive being handed over spans from the Chamber’s founding in 1839 to 1973, and includes correspondence, meeting minutes, reports, ledgers, and publications that chronicle the development of trade, enterprise, and industry in Sri Lanka. Together, these records provide a rare and detailed account of how the island’s economy evolved and how its business community helped shape national progress.
The Ceylon Chamber of Commerce was established on 25 March 1839 on the principle that the interests of commerce and trade are best advanced when merchants unite and cooperate in matters affecting the common good. At the time, Ceylon was among the earliest regions in Asia to establish a chamber of commerce, alongside counterparts in Bengal, Bombay, Madras, Canton, Penang, and Singapore.
From its earliest years, the Chamber played a central role in organising and guiding trade. It played a central role in establishing and growing the export economy built on commodities such as coffee, cinnamon, coconut oil, tea, and rubber, and hosted the island’s renowned tea and rubber auctions. It also developed rules and standards for trading practices, helping create an environment of trust and reliability that enabled Sri Lanka’s commerce to thrive.
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