In response to the ongoing coconut shortage in Sri Lanka, the government is moving forward with plans to import coconut products from Indonesia. A joint Cabinet paper, spearheaded by Minister of Industry and Entrepreneurship Development Sunil Handunnetti and Minister of Plantations and Community Infrastructure Samantha Vidyarathna, is expected to be presented this week for approval by the Cabinet of Ministers.
The proposed import plan will allow the entry of coconut products equivalent to 200 million coconuts under three categories: coconut milk, coconut flour, and chilled coconut cream. However, this approval will be granted exclusively for re-export purposes, ensuring that the imports do not impact the local coconut market for direct consumer consumption.
To oversee and regulate the imports, a committee will be established, comprising the Secretaries of the Ministry of Plantations and Community Infrastructure and the Ministry of Industries. This committee will be responsible for assessing and recommending the required quantities of coconut for each institution. The Secretary of the Ministry of Plantations will then forward these recommendations to the Secretary of the Ministry of Industries for final approval.
The government justifies this decision by pointing out that the current coconut harvest is insufficient to meet industrial demands until April. By temporarily allowing imports, authorities aim to protect businesses dependent on coconut-based products, including those engaged in value-added exports.
Additionally, the government has taken steps to support the local coconut oil industry by permitting the import of non-copra dried or shredded coconut pieces. The exact quantities required for this purpose will be determined by the same regulatory committee. Furthermore, a separate Cabinet paper is being prepared to seek approval for importing raw materials for the coconut oil industry under a tax concession, ensuring affordability and sustainability in local production.
The move highlights the government’s strategic approach to stabilizing the coconut industry while ensuring that domestic production recovers in the coming months.
