The Government of Sri Lanka has stepped forward to address the critical coconut shortage plaguing the nation by identifying land in the Northern Province for large-scale coconut cultivation. This move comes in response to urgent calls from the Ceylon Chamber of Coconut Industries (CCCI) to combat a supply crisis that threatens domestic consumption and the export potential of this key agricultural sector.
A Looming Coconut Crisis
Highlighting the gravity of the situation, CCCI President Jayantha B. Samarakoon revealed that Sri Lanka’s coconut production has declined from 3 billion nuts to 2.68 billion in 2024, with further reductions expected in 2025. This shortfall has left a gap of 200 million nuts between January and April, pushing domestic and industrial coconut prices to unprecedented levels.
Key contributors to this decline include skyrocketing fertilizer costs—up from Rs. 1,500 to Rs. 12,000 per 50 kg bag—pest infestations, fragmented farmland, and climate change impacts. Notably, fertilizer usage among farmers has fallen below 10% due to unaffordability, further reducing yields.
Immediate Measures Proposed
To bridge the gap, the CCCI has proposed several measures, including the import of 200 million coconuts and raw materials such as dried kernels and copra. In addition, the Chamber has called for:
- Subsidized Fertilizer: Reducing costs to Rs. 4,000 per bag to revive usage and boost productivity.
Water and Soil Conservation Subsidies: To improve cultivation sustainability. - Consumer Awareness: Campaigns to encourage the use of processed products and reduce household coconut waste, which currently accounts for up to 25% of domestic consumption.
Northern Province: A New Frontier for Coconut Cultivation
In an encouraging development, the government has identified suitable land in the Northern Province for large-scale coconut farming. This region holds untapped potential for agricultural expansion due to its favourable climate and availability of underutilized land. The allocation aims to boost coconut production, stabilize supply chains, and strengthen the nation’s position in the global coconut market.
A Thriving Export Sector with Untapped Potential
Despite domestic challenges, Sri Lanka’s coconut export industry has demonstrated resilience, generating $782 million in revenue by November 2024, a 20% year-on-year increase. Exports are projected to hit a record $850 million in 2025, driven by global demand for plant-based and vegan products.
The CCCI has set its sights on achieving $1.5 billion in export revenue by 2027, contingent on increasing annual coconut production to 4.5 billion nuts. To realize this goal, the Chamber has proposed allocating Rs. 1.5 billion from the CESS Fund for pest control, moisture conservation, replanting, and infrastructure development.
A Call for Government Prioritization
CCCI President Samarakoon has urged the government to prioritize the coconut industry in its economic agenda, emphasizing its pivotal role in supporting rural livelihoods and driving export revenue. With coordinated efforts, strategic land use in the North, and immediate intervention, Sri Lanka can navigate the current crisis and unlock the full potential of its coconut sector.
This proactive step to cultivate coconuts in the Northern Province underscores the urgency of safeguarding this vital industry, which stands as a cornerstone of Sri Lanka’s agricultural and export
