Sri Lanka Saudi coco peat deal worth US$130.16 million was reportedly cancelled after bribery allegations involving a senior CDA officer.
COLOMBO — A proposed US$130.16 million export deal to supply Sri Lankan compressed coco peat to Saudi Arabia has reportedly been cancelled following allegations that a senior officer of the Coconut Development Authority demanded improper payments from visiting Saudi representatives.
The reported order involved 20,000 containers of compressed coco peat intended for the Saudi Green Initiative, a major environmental programme operating alongside Saudi Arabia’s Vision 2030 development framework.
If confirmed, the loss of the deal would represent a significant setback for Sri Lanka’s export sector at a time when the country continues to prioritise foreign-exchange earnings and new overseas markets.
No evidence contained in the material reviewed establishes that the allegation against the unnamed officer has been proven through an official investigation or court process.
Bribery Allegation During Factory Inspections
According to the information reported, Saudi State representatives travelled to Sri Lanka to inspect coco peat manufacturing facilities before the proposed purchase was finalised.
During those visits, allegations were made that a senior Coconut Development Authority officer misused official authority to demand illegal payments.
The source states that the Saudi representatives subsequently lodged complaints and withdrew from the proposed transaction.
Those claims require urgent independent verification.
Neither the identity of the officer nor the findings of any formal investigation are contained in the material supplied for this report.
More Than Export Revenue at Stake
The potential impact extends beyond the US$130.16 million value of the proposed order.
The source identifies several areas that could have benefited had the deal proceeded:
- Increased income and business opportunities for coconut growers, processors and packaging companies.
- Greater activity across transport, logistics and port services connected to the export supply chain.
- Stronger confidence in Sri Lanka as a reliable supplier to Middle Eastern markets.
For an export-oriented industry, the loss of a major international order can also affect future commercial relationships if overseas buyers develop concerns about institutional reliability or the ease of doing business.
Coconut Industry Already Under Pressure
The controversy comes as Sri Lanka’s coconut sector faces broader production and export challenges.
The source states that coco peat export revenue has fallen by 21.87 percent, attributing the decline to factors including inadequate fertiliser application, climate change, pest damage and reduced domestic harvests.
Against that background, government institutions responsible for supporting agriculture and exports face added pressure to protect market access and maintain confidence among international buyers.
Any allegation that official misconduct may have disrupted a major export opportunity therefore warrants close examination.
Authorities Must Establish What Happened
Several questions now require clear answers.
Was a US$130.16 million agreement with the Saudi side formally approved, or was it still under negotiation?
Did Saudi representatives lodge an official complaint concerning a Coconut Development Authority officer?
Was any payment or other benefit demanded?
Did the alleged conduct directly cause the cancellation of the proposed purchase?
Has the officer concerned been identified internally, suspended or questioned?
The Government, the Coconut Development Authority and the relevant investigative authorities should establish the facts through an impartial inquiry.
If no wrongdoing occurred, the officials concerned should be cleared publicly.
If evidence substantiates the allegation, disciplinary and legal action should follow under the applicable law.
Sri Lanka’s ability to attract and retain international business depends not only on production capacity and pricing, but also on the credibility of the institutions that foreign investors and buyers must deal with.
For a country seeking to expand exports and rebuild confidence in its economy, the handling of this allegation will matter almost as much as the fate of the proposed Saudi order itself.
