News

Lanka’s coconut industry faces major setback as US slaps 30% tariff

Published

7 months ago

2025/07/20

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.”

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News

Prime Minister meets delegation from the European External Action Service

Published

32 mins ago

2026/02/12

Priyan

Prime Minister Dr. Harini Amarasuriya met with the representatives of the European External Action Service [EEAS] on Tuesdqy [10 th February] at the Prime Minister’s office.

Welcoming the delegation from the European External Action Service (EEAS), the Prime Minister emphasized the importance of further strengthening and deepening the long-standing partnership between Sri Lanka and the European Union, noting the role of the European Union as a key development and economic partner.

The Prime Minister also expressed appreciation for the timely assistance extended by the European Union to Sri Lanka in response to the recent cyclone, highlighting the EU’s continued solidarity and support during times of need.

Attention was drawn to the need to expand economic cooperation between Sri Lanka and the European Union. The Prime Minister underscored the importance of undertaking necessary legislative and policy reforms to facilitate enhanced economic engagement, trade, and investment.

The delegation was briefed on the ongoing initiatives and reforms being implemented by the new Government aimed at strengthening economic stability, governance, and creating a conducive environment for sustainable growth and international cooperation.

The meeting was attended by the Acting Managing Director for Asia and the Pacific in the European External Action Service, EU co-chair of the Joint Commission, Ms. Paola Pampaloni; EU Ambassador, Head of EU Delegation Ms. Carmen Moreno and the representatives of European External Action Services and Delegation of the European Union, and Additional Secretary to the Prime Minister, Ms. Sagarika Bogahawatta and the officials from the Ministry of Foreign Affairs, Foreign Employment, Tourism Sri Lanka.

[Prime Minister’s Media Division]

Business

Newly appointed ADB Country Director to Sri Lanka and delegation meet PM

Published

4 hours ago

2026/02/12

Priyan

The newly appointed Country Director of the Asian Development Bank for Sri Lanka Ms Shannon Cowlin and the accompanying delegation met with Prime Minister Dr. Harini Amarasuriya on Tuesday [0th of February] at the Prime Minister’s office.

Welcoming the delegation, the Prime Minister extended congratulations to the newly appointed Country Director and acknowledged the long-standing partnership with the Asian Development Bank. The Prime Minister also expressed appreciation for ADB Bank’s continued engagement and support aligned with Sri Lanka’s national development priorities.

The Prime Minister also conveyed gratitude for the timely assistance extended by the ADB in response to Cyclone Ditwah, noting the importance of such support in mitigating the immediate impacts of natural disasters.

The ADB delegation reiterated its readiness to further assist Sri Lanka during the post-cyclone recovery phase, including rebuilding and reconstruction efforts, and emphasized its commitment to the supporting the education sector.

The meeting was attended by OIC / Deputy Director General, SARD Ms. Sona Shrestha, Ms. Cholpon Mambetova Country Operations Head of ADB Sri Lanka Mission Resident, Additional Secretary to the Prime Minister Ms. Sagarika Bogahawatta, Director General of the External Resource Department, Ministry of Finance Samantha Bandara, Director for ADB Division in External Resource Department, Ministry of Finance Ranjith Gurusinghe.

[Prime Minister’s Media Division]

News

School student transport services are being regulated

Published

4 hours ago

2026/02/12

Priyan

A discussion on regulating school student transport services was held on the 09th of February at the Prime Minister’s Office under the patronage of Prime Minister Dr. Harini Amarasuriya, with the participation of officials from the National Transport Commission and the Ministry of Education.

The authority for regulating school student transport has been vested with the National Transport Commission, and as the relevant draft of regulations have already been prepared, discussions were held on the provisions contained in these drafts as well as on new proposals that should be incorporated.

During the discussion, the attention was focused on meeting the emerging needs of transportation arising from the schools, minimizing issues encountered in the transportation of school students by establishing an organized transport mechanism, and deploying the “Sisu Sariya” school transport service in a more efficient and effective manner followed by the new educational reforms process.

Discussions were also held on introducing laws and regulations to systematize the transportation of schoolchildren, prioritizing child protection by preventing reported incidents of abuse and harassment during student transport, and enhancing professionalism among school transport service providers to ensure a responsible and accountable service.

The focus was also emphasized on the need for coordinated action among the Ministry of Transport, Highways and Urban Development, the National Transport Commission, the Ministry of Education, Higher Education and Vocational Education, and the National Child Protection Authority.

The discussion was attended by the Minister of Transport, Highways and Urban Development Bimal Rathnayake, Chairman of the National Transport Commission P. A. Chandrapala, officials of the National Transport Commission, and the officials from the Ministry of Education, Higher Education and Vocational Education.

[Prime Minister’s Media Division]