By a special correspondent
Sri Lanka’s electricity tariff debate has become a flashpoint where economic orthodoxy, political credibility, and public suffering converge. The Government’s proposal to raise electricity tariffs by 11.57% now under review by the Public Utilities Commission of Sri Lanka has sparked outrage, particularly as communities struggle to recover from Cyclone Ditwah and a prolonged cost-of-living crisis.
Opposition politicians argue that the proposed increase is not merely ill-timed but emblematic of a deeper political contradiction. Opposition leader Sajith Premadasa has accused the Government of reneging on campaign-era promises to slash electricity bills, recalling assurances that household expens…
Sri Lanka Coconut Exports Surge, But Industry Needs Deeper Reforms
Sri Lanka’s coconut industry has posted impressive export earnings in 2025, surpassing USD 1 billion within the first ten months of the year. Government statements credit value addition and policy direction for the achievement, citing EDB data that shows export revenue of USD 1,033.9 million between January and October, a 43.83 percent increase from 2024. While the performance is encouraging, it also exposes long-standing gaps that must be addressed if the sector is to grow sustainably.
There is no doubt that value-added coconut products now dominate export growth. Items such as virgin coconut oil, coconut cream, liquid coconut milk, desiccated coconut, activated carbon, and coco peat enjoy strong global demand. These products have allowed Sri Lanka to move beyond raw nut exports, lifting earnings while coconut-based exports now contribute 7.2 percent of total national export revenue. This transition, however, is far from complete.
At the heart of the industry lies a fragile cultivation base. More than 80 percent of coconuts are produced by smallholders, many of whom rely on aging trees planted decades ago. Replanting rates remain low, and climate variability has increased yield volatility. Without systematic replanting using high-yield and climate-resilient varieties, export growth will eventually face supply constraints.
Infrastructure is another weak link. Although export processors have modernized, post-harvest handling, storage, and transport at farm level remain inefficient. High post-harvest losses reduce usable output, while inconsistent quality affects processing efficiency. Strengthening farmer cooperatives and investing in regional collection centers could significantly improve supply stability.
Policy coordination also needs improvement. Multiple agencies oversee cultivation, processing, exports, and research, often working in silos. A unified coconut industry strategy—linking the Coconut Research Institute, exporters, provincial authorities, and financial institutions—would help align productivity goals with export ambitions. Access to affordable credit for replanting and intercropping is especially critical.
Looking ahead to the government’s target of USD 2.5 billion in exports by 2030, ambition must be matched with action. Expansion of cultivation areas, better water management, digital extension services, and incentives for sustainable farming practices are essential. Equally important is protecting domestic coconut availability and price stability, ensuring export growth does not burden local consumers.
By the end of 2025, Sri Lanka’s coconut industry stands at a crossroads. The export surge offers momentum, but only structural reforms rooted in cultivation, coordination, and climate resilience will determine whether today’s success becomes a durable national advantage rather than a short-lived statistical triumph.