Cocoa beans market in Sri Lanka

Earlier Report Observations

The market volume for cocoa beans in Sri Lanka contracted from 2.3 thousand tonnes in 2018 to 1.5 thousand tonnes in 2020. This decline was driven by landowner disinterest in cultivating cocoa as an inter-crop with coconut, despite its ecological benefits, with Ceylon Chocolates Ltd remaining the dominant buyer operating the only 'Beans to Bar' facility.

Production and market size continued to decrease, reaching a low of 1.2 thousand tonnes in 2022. Volatility in the coconut market, influenced by weather patterns and fertilizer policy changes, affected cocoa supply due to their inter-cropping relationship. The market stabilized in 2023 at 1.3 thousand tonnes.

By 2024, local cocoa bean shortages prompted imports from Africa and Southeast Asia. New Food Labelling Regulations set for 2025 and the imposition of US tariffs on coconut products introduced additional regulatory pressures, while the Coconut Development Authority's auctions aimed to support related agricultural markets.

Production cocoa beans in Sri Lanka

In kind, 2017-2020, t

Top producers of cocoa beans, 2017-2020

World map of production of cocoa beans, 2017-2020

Sri Lanka's cocoa bean production declined for the second consecutive year. In 2020, the country produced 1 455 tonnes of cocoa beans, marking a slight decrease of 2.9% from the previous year. The largest decline occurred in 2019, when production fell by 29.1%. In contrast, 2018 saw the highest production level at 2 115 tonnes, representing a significant increase of 42.4%.

Annual dynamics of production in Sri Lanka in kind, 2017-2020, t

Exports cocoa beans from Sri Lanka

Exports in kind, t

The export market for cocoa beans from Sri Lanka showed considerable volatility during this period. In 2019, exports reached their lowest point at just 2.0 tonnes, while the peak was recorded in 2017, creating a substantial 13.1-fold difference between these years. In 2020, exports rebounded sharply to 3.6 tonnes, representing a dramatic 76.5% increase compared to 2019. The most significant decline occurred in 2018, when exports dropped by 75.1%.

Annual dynamics of product's exports from Sri Lanka in kind, 2017-2020, t

From 2017 to 2020, Uganda and Germany were the primary destinations for Sri Lanka's cocoa bean exports in volume terms, together accounting for 83.8% of total export flows. The remaining share was distributed among various other markets.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Sri Lanka in kind, 2017-2020

Exports in value, K $ US

The value of cocoa bean exports from Sri Lanka experienced notable fluctuations during this period. In 2019, export value hit its lowest point at 18.1 thousand US dollars, while the peak occurred in 2017, resulting in a 6.5-fold difference between these years. In 2020, export value recovered to 26.6 thousand US dollars, showing a sharp improvement of 46.9% compared to 2019. The most significant decline was recorded in 2019, when export value fell by 76.1%.

Annual dynamics of product's exports from Sri Lanka in value, 2017-2020, K $ US

During the 2017-2020 period, Germany (37.6% of export value), Uganda (34.5% of export value), and Czechia (11.8% of export value) were the largest buyers of Sri Lankan cocoa beans in value terms. Together, these three countries accounted for 83.9% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Sri Lanka in value, 2017-2020

Imports cocoa beans to Sri Lanka

Imports in kind, t

Sri Lanka's cocoa bean imports increased for the second consecutive year. In 2019, imports reached 172.4 tonnes, representing a 5.2% gain compared to 2018. Between 2017 and 2019, imports grew by 14.3%, which translates to an annualized growth rate of 4.6%.

Annual dynamics of product's imports to Sri Lanka in kind, 2017-2020, t

Throughout the 2017-2020 period, Ghana (56.3% of import volume), Côte d'Ivoire (20.5% of import volume), and Japan (10.3% of import volume) remained the key sources for Sri Lanka's cocoa bean imports in volume terms. Together, these three countries accounted for 87.1% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Sri Lanka in kind, 2017-2020

Imports in value, K $ US

In 2019, the value of cocoa bean imports into Sri Lanka totaled 458.5 thousand US dollars, representing a 17.8% increase compared to 2018. Over the 2017-2019 period, import value grew by 9.5%, with a compound annual growth rate of 3.1%. The lowest import value was recorded in 2018 at 389.1 thousand US dollars, which also saw the most significant decline of 7.1%.

Annual dynamics of product's imports to Sri Lanka in value, 2017-2020, K $ US

From 2017 to 2020, Ghana (55.8% of import value), Côte d'Ivoire (19.5% of import value), and Japan (11.0% of import value) continued to be the main suppliers of cocoa beans to Sri Lanka in value terms. Together, these three countries accounted for 86.3% of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Sri Lanka in value, 2017-2020