Sri Lanka is currently grappling with a coconut shortage, which has prompted the government to explore international imports to stabilize the supply. As part of this initiative, Sri Lanka is considering importing coconut products from Indonesia, a move that is expected to address domestic demand without significantly impacting local coconut production.

Government’s Import Strategy

The Sri Lankan government, through the Minister of Industry and Entrepreneurship Development and the Minister of Plantation and Community Infrastructure, is preparing a cabinet paper to facilitate the import of coconut products from Indonesia. This proposal is expected to be submitted for approval in the coming week and is likely to receive the green light.

Types of Coconut Products to Be Imported

The planned imports will include various coconut-related products such as:

• Coconut kernels
• Coconut powder
• Coconut milk

By allowing these imports, the government aims to ensure a steady supply of essential coconut-based ingredients for the food and beverage industry.

Impact on Local Coconut Production

Initially, a study was initiated to assess whether the imports could be carried out without negatively affecting local coconut production. However, there are indications that this assessment might be abandoned, suggesting that the urgency of the shortage is taking precedence over long-term impact evaluations.

Involvement of Manufacturers

Rather than a centralized import mechanism, the Sri Lankan government will permit individual manufacturers to import coconut products based on market demand. This decentralized approach allows businesses to procure what they need without unnecessary bureaucratic delays.

Projected Import Volume

The government plans to import coconut products equivalent to approximately 200 million coconuts, a significant volume that highlights the severity of the current shortage.

Indonesia as the Preferred Supplier

According to the Chairman of the Coconut Development Authority, Indonesia has been identified as the most suitable supplier for these imports. With its large-scale coconut production and well-established export infrastructure, Indonesia can provide the required coconut products efficiently.

Conclusion

Sri Lanka’s decision to import coconut products from Indonesia is a strategic response to the ongoing supply crisis. With cabinet approval anticipated soon, this initiative could help stabilize the coconut market and support industries reliant on coconut-based products. However, long-term measures to boost local coconut production may be necessary to prevent future shortages.