The Coconut Development Authority (CDA) conducted an awareness session for coconut oil manufacturers in Colombo last week to stabilise supply and improve product quality in the domestic market.
The session was chaired by Chairman of CDA, Shantha Ranathunga.
Sri Lanka needs 4.5 billion coconuts annually to meet domestic consumption and export demands.
However, today production stands at only three billion nuts per year. To bridge this gap, the CDA, in collaboration with the Coconut Cultivation Board and the Coconut Research Institute, is implementing short and long-term measures to increase annual coconut production to 4.2 billion nuts by 2030.
The Government has approved the import of dried coconut chips (not Copra) as a temporary measure to ensure a steady supply of raw materials for coconut oil manufacturers.
Other key measures include:
Reducing the special commodity levy on dried coconut chips from Rs. 320/kg to Rs. 10/kg.
A cap of 25,000 kg on imports under this concession for the remainder of this year.
All imported raw materials must be used exclusively for domestic coconut oil production, supervised by the CDA.
With the concessional levy for raw materials, coconut oil produced under this scheme will only be subject to 18% VAT and 2.5% SCCL, ensuring affordability for consumers.
To combat the adulteration of coconut oil — a major concern in the domestic market — the Government has mandated that all coconut oil must be sold in properly labelled packaging, with quantities starting from 175ml.
The CDA is also facilitating:
Expedited GMP certification for coconut oil manufacturers.
Manufacturers to obtain SLS certification within two years, ensuring compliance with national quality standards.
