Sri Lanka’s Coconut Exports Hit Historic $1 Billion Milestone

By Lions Roar News Business Desk

COLOMBO, SRI LANKA (January 3, 2026) — For the first time in history, Sri Lanka’s coconut sector has breached the US$ 1 billion mark in export earnings. Data from the Export Development Board (EDB) reveals that between January and October 2025, revenue from coconut and coconut-based products surged to US$ 1,033.9 million, a staggering 43.83% increase compared to the same period in 2024.

This milestone signals a transformation of the industry from a traditional raw-nut exporter to a high-value, tech-driven global player.

📈 The Rise of “Value-Added” Gold

The core driver behind this record growth is a strategic pivot toward value-added products. Global consumers are increasingly demanding Sri Lankan-made premium items, leading to explosive growth in specific categories:

Coconut Cream: A massive 92.4% increase in demand.
Coconut Oil: Up by 81.5%, driven by pharmaceutical and cosmetic industries.
Liquid Coconut Milk: Rose by over 70% as a dairy alternative.
Activated Carbon: Earned millions as a critical component in global air and water filtration systems.
Coco Peat: Remains the world’s preferred sustainable growth medium for international horticulture.

Today, coconut-based products represent 7.2% of Sri Lanka’s total national exports, solidifying their position alongside tea and apparel as a pillar of the economy.

🛡️ Policy Shifts: Protecting the Export Momentum

To reach the billion-dollar target while balancing local needs, the government implemented several tactical policies:

“Re-Export” Strategy: Exporters were granted permission to import limited quantities of raw coconut kernel and milk strictly for processing and re-export. This ensured that the export industry never stopped moving, even during local off-seasons.
Waste Reduction: Citizens were encouraged to adopt more efficient household usage patterns—minimizing waste of coconut water and shells—to divert more supply to factories.
Market Resilience: By managing the supply chain scientifically, the government ensured no shortages occurred in the local market despite the record-breaking export volume.

🚜 Future Target: $2.5 Billion by 2030

The government has set its sights even higher, targeting US$ 2.5 billion in annual revenue by the end of the decade.

The Roadmap to 2030:

The Northern Coconut Triangle: Establishing a new production hub across 16,000 acres in Jaffna, Mullaitivu, and Mannar.
Expansion: A total of 36,000 new acres are slated for cultivation nationwide to meet the rising global nut requirement, which is expected to hit 4.2 billion nuts annually by 2030.
GI Certification: Implementing Geographic Indication (GI) labels to ensure “Ceylon Coconut” commands a premium price on the global stage.