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.
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Sun directly overhead Chilaw, Bingiriya, Halmillawewa, Panduwasnuwara, Gokarella, Kawudupelella, Koppaveli and Kirankulam about 12:12 noon. today (09)
On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka from the 05th to 15th of April this year.
The nearest areas of Sri Lanka over which the sun is overhead today (09th) are Chilaw, Bingiriya, Halmillawewa, Panduwasnuwara, Gokarella, Kawudupelella, Koppaveli and Kirankulam about 12:12 noon.
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Heat Index at Caution Level in the Western, Sabaragamuwa, Southern, Eastern, North-western, Northern and North-central provinces and in Monaragala district
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 4.30 p.m. on 08 April 2026, valid for 09 April 2026.
The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern, Eastern, North-western, Northern and North-central provinces and in Monaragala district.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry
of Health in this regard as well. For further clarifications please contact 011-7446491.
News
AG: Coal procurement full of irregularities
The Auditor General has warned that delays in coal procurement and continued reliance on suppliers of questionable standards could disrupt the supply of electricity.
The special audit report on coal imports was presented to Parliament on Tuesday (07) by Bimal Ratnayake, Leader of the House, at the commencement of proceedings.
However, Opposition MPs complained to Speaker Dr Jagath Wickramaratne that copies of the report had not been distributed to Members of Parliament. Responding to the complaint, the Speaker said it was the responsibility of the Parliamentary Secretariat to ensure the report was provided to MPs.
The special audit, requested by the Committee on Public Enterprises (COPE), examined the coal procurement process of the Lanka Coal Company for the Lakvijaya Power Plant and purchases planned for the 2025/2026 season.
The audit revealed several irregularities in the tender process. It found that the laboratory issuing quality reports at the loading port for the controversial supplier Trident Company had its licence cancelled. The report also disclosed that at the time advertisements were published calling for tenders,the company had not completed its registration but was awarded the tender. In addition, three other suppliers who had not confirmed their registration were allowed to submit bids.
Coal shipments for the Lakvijaya Power Plant are tested at both loading and unloading ports. According to the audit, Mitra SK South Africa had been appointed to conduct testing at the loading port, but due to the absence of accreditation the task was assigned to PT Mitra SK Analisa Testama Samarinda, an Indonesian firm whose licence had been cancelled on December 29, 2025. Auditor General S. Jayarathne has noted that the audit could not confirm whether the licence had been renewed by March 31, 2026, and that all 12 shipment reports issued at the loading port lacked accreditation.
The report has further pointed to discrepancies between loading port laboratory reports and data recorded at the plant’s main control unit. Despite the availability of alternative verification methods, the Lanka Coal Company failed to use them to confirm the accuracy of the reports.
The audit also highlighted that no coal shipments were brought to Sri Lanka between November 13 and December 30, 2025, despite the need to secure maximum stocks during that period.
As a result of the shortage, an emergency procurement was carried out on March 18 this year, selecting Taranjot Resource Pvt Ltd. as the supplier. However, the Auditor General revealed that this company had failed within the previous 36 months to supply coal with the required calorific value of 5,900 or above to the Lakvijaya Power Plant.
The report warns that delays in coal imports and dependence on suppliers with questionable standards could adversely affect the continuous supply of electricity from the plant.
The National Audit Office of Sri Lanka has further estimated that the use of substandard coal has caused losses amounting to nearly Rs. 2.24 billion.
According to the report, losses incurred from individual shipments included more than Rs. 160 million from the first vessel (consignment No. 456), over Rs. 90 million from the second vessel (No. 457), more than Rs. 310 million from the third vessel (No. 458), and over Rs. 150 million from the fourth vessel (No. 459). Additional losses included nearly Rs. 180 million from the fifth vessel (No. 460), about Rs. 30 million from the sixth vessel (No. 461), over Rs. 240 million from the seventh vessel (No. 462), more than Rs. 390 million from the eighth vessel (No. 463) and over Rs. 390 million from the tenth vessel (No. 464).
The report has also noted that because the available coal stocks cannot generate electricity at the plant’s full capacity of 300 megawatts, additional power may have to be obtained from alternative sources. The estimated additional energy requirement for this purpose is 76,354,087 kilowatt-hours, the report has pointed out.
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