Business
SL’s coconut price hike has roots in past erratic policies on fertilizer use – CDA chairman
By Ifham Nizam
Sri Lanka’s coconut industry is facing a significant crisis, with production levels plummeting from three billion nuts annually to just 2.85 billion nuts. Erratic policies of previous governments regarding fertilizer use have played a key role in precipitating this situation, Coconut Development Authority (CDA) chairman, Shantha Ranathunga said.
Speaking to The Island Financial Review, Ranathunga highlighted that the impact of foreign exchange fluctuations has led many farmers to neglect best practices in nurturing coconut trees, thus exacerbating the problem.
Ranathunga added: ‘Additionally, the industry is grappling with various diseases and pest infestations, often a result of insufficient care and oversight. Despite these challenges, the global market is witnessing an unexpected boom for local exporters. A shortage of coconut supplies in the Philippines and Indonesia has created opportunities for Sri Lankan exporters, who are now able to secure better prices for their products.
‘In response to the escalating global demand and prices for coconuts, including desiccated coconut, the government has begun implementing measures to facilitate imports of coconut kernel. This decision, which follows requests from major companies like Nestle and CBL, is intended to support the local export market.
‘A Cabinet paper is currently being prepared to grant exporters the authority to import any quantity of coconut kernel they require, thereby removing restrictions that have previously hampered supply.
‘We have concerns over the influence of a “coconut mafia,” which has manipulated local prices, resulting in retail costs soaring to Rs. 150-160 for coconuts purchased from estates at Rs. 90-100. To counteract this, we have urged state estates participating in the coconut auction at the CDA to set auction prices at a minimum of Rs. 105, aiming to curb excessive profits made by middlemen.
‘Furthermore, the CDA is taking steps to provide financial relief to farmers. A subsidy of Rs. 60,000 to 65,000 per acre—covering approximately 50 trees—will be available, financed from the CDA’s funds. This initiative aims to assist small farmers in acquiring the necessary fertilizers to boost coconut production.
‘With local coconut and coconut oil prices rapidly escalating, the urgency to stabilize the domestic market has never been greater. Rising global edible oil prices have compounded these issues, with refined coconut oil prices climbing from USD 1,320 to USD 1,880 per ton, while palm oil prices approach USD 1,250 per ton due to climatic impacts and increased international demand.’
The Central Bank of Sri Lanka today (07) presented its flagship publication, the Annual Economic Review for 2024 (AER 2024), to President and Minister of Finance, Anura Kumara Disanayake, highlighting the steady progress of Sri Lanka’s economic recovery following the country’s most severe downturn in recent history.
The report was officially handed over by Dr. P. Nandalal Weerasinghe, Governor of the Central Bank, during a special ceremony held at the Presidential Secretariat.
AER 2024 comprises four main chapters: Macroeconomic Developments, Conditions of the Financial System, Review of Central Bank’s Policies and Macroeconomic Outlook.
According to the Review, the Sri Lankan economy showed significant signs of recovery in 2024, following the deep economic crisis experienced two years ago. The recovery trajectory, though challenging, has been notably faster than that of many other debt-distressed countries.
Improvements in economic activity, a partial resurgence in purchasing power and reduced uncertainty are among the key positive indicators noted in the report.
The event was attended by Dr. Nandika Sanath Kumanayake, Secretary to the President, K. M. Mahinda Siriwardena, Secretary to the Treasury, Mrs. K. M. A. N. Daulagala, Senior Deputy Governor, Dr. C. Amarasekara, Assistant Governor, Dr. (Mrs.) S. Jegajeevan, Director of Economic Research and Dr. L. R. C. Pathberiya and Additional Director of Economic Research at the Central Bank Dr. V. D. Wickramarachchi.
[PMD]
Business
IceWarp expands into Sri Lanka, fostering European innovation in collaboration with FentonsIT
IceWarp, a global leader in business communication solutions, has officially launched its cutting-edge platform in Sri Lanka, bringing European expertise in email and collaboration solutions to support the country’s evolving business landscape.
This expansion is driven by a strategic partnership with Fentons Information Technology (FIT), the Information Technology arm of Hayleys Fentons Limited.
The grand launch event held at The Kingsbury Colombo on 4th April, 2025, was graced by several distinguished guests, including Chief Guest Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC.
The presence of Adam Paclt, Global CEO of IceWarp, and Pramod Sharda, CEO for India and the Middle East of IceWarp, along with their global team, highlighted the significance of this expansion. Industry experts, government officials, corporate leaders, and CIOs from the banking, financial services and insurance sectors were in attendance as well, reflecting strong local interest in IceWarp’s European expertise.
With this launch, Sri Lankan businesses now have access to an affordable, scalable and secure alternative to Microsoft 365 and Google Workspace. IceWarp’s advanced Collaboration Suite integrates a wide range of tools into a single, unified platform designed to streamline communication and boost productivity. Offering flexible hybrid deployment options and cost-efficient solution, IceWarp enables organisations to optimise their operations without compromising security or functionality.
Ceylon Energy and HJT China have successfully completed the Mahiyangana-Kappalthurei 33kV power distribution lines and the Uhana Gantry as part of Sri Lanka’s Supporting Electricity Supply Reliability Improvement Project (SESRIP). Funded by the Asian Development Bank ($42 million), SESRIP aims to expand energy access in underserved regions, including conflict-affected areas and provinces like Uva and North Central.
The project’s infrastructure spans over 270 km of 33kV lines, 13 switching gantries, and 2,372 km of low-voltage extensions.
The projects connect 35,000+ households and improve reliability for 493,000+ consumers; integrates renewables to reduce losses.
The projects’ notable components include: Mahiyangana-Bibila Line: 36 km with 147 steel towers and Kappalthurei-Sixth Mile Post Line: 14 km with 58 towers.
Ceylon Energy Chairman Madushanka Fernando hailed it as a ‘new beginning of a brighter era’, emphasising the project’s role in uplifting rural communities and driving sustainable development.
The initiative underscores Sri Lanka’s commitment to inclusive, reliable energy and climate resilience.
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