• Local coconut supply directed to satisfy domestic demand only: CRI Acting Director
• Government considers importing frozen coconut kernels to meet industry demand

Sri Lanka is preparing to import frozen coconut kernels to address a local coconut shortage amid growing demand for coconut-based exports.

The Coconut Research Institute (CRI) reported a sharp increase in demand for coconut export products, despite the current shortage in domestic coconut supply.

CRI Acting Director Dr. Nayani Arachchige told The Daily Morning Business that two primary factors have affected this year’s coconut harvest: Higher-than-normal rainfall and temperature fluctuations, both of which impact coconut production.

To counter this, the CRI has recommended increasing local supply for domestic use while introducing imports to support industry needs. “We have submitted a cabinet proposal to import frozen kernels,” Arachchige said, adding that once approved, companies can begin imports to supplement local supply.

While these are short-term solutions, Arachchige emphasised the need for long-term support to ensure a stable coconut supply.

“The government should offer subsidies or soft loans to help coconut growers adopt agricultural practices like moisture conservation, fertilisation, and irrigation,” she said.

According to the CRI, if Sri Lanka’s 55 million mature coconut plants could produce an average of 60–70 nuts per palm annually, the country could meet both local and export demands.

To supplement coconut supply safely, Sri Lanka would likely source frozen kernels from leading producers like the Philippines and Indonesia. Importing kernels instead of whole coconuts minimises the risk of introducing harmful plant diseases.

In response to high prices in the local market, the Plantation Ministry has launched mobile services to sell coconuts directly to consumers at affordable prices. Typically, the coconuts from government agencies are sold via the Colombo auction, though auction sales have slowed recently.

The Coconut Cultivation Board, along with Chilaw and Kurunegala Plantations, has started selling coconuts directly to urban areas to make them more accessible to consumers.

Ernst and Young Senior Partner and Ceylon Chamber of Coconut Industries (CCCI) General Secretary Ranil De Saram noted that although the export market remains strong, limited coconut supplies have driven prices higher than expected.

He added that the CCCI is planning to meet with the President to discuss short-term initiatives to boost coconut production. Additionally, the CCCI aims to explore expanding coconut cultivation into the north and east regions using available government land, helping to secure supply for both domestic and export markets over the next few years.