Coconuts market in Sri Lanka

Earlier Report Observations

Coconut production in Sri Lanka fluctuated from 2018 to 2021, with a peak in 2019 and a recovery in 2021. The market volume followed a similar pattern, reaching 2.4 million tons in 2019. During this period, production was affected by climate changes, inadequate fertilizer usage, and the spread of white fly disease, which limited yields and contributed to price volatility. Fragmentation of cultivation land and low investment in modern farming practices among smallholders further constrained productivity improvements.

A sharp downturn occurred from 2022 to 2023, with production falling by approximately 40% in 2022 due to a government fertilizer ban and severe white fly infestations. This led to a significant drop in market volume to 2.1 million tons in 2022 and 2.0 million tons in 2023, accompanied by retail coconut prices surging to record levels. Drought and adverse weather conditions in 2023 exacerbated the decline, reducing production by an additional 25%. Despite the shrinking domestic supply, export revenues from value-added products like coconut cream and oil grew strongly, driven by global demand for plant-based alternatives.

State-owned entities such as the Coconut Development Board and the Coconut Research Institute actively engaged in addressing production shortfalls and market stabilization. However, ongoing challenges like land conversion for urbanization, persistent pest issues, and fertilizer shortages continued to pressure local availability. The government implemented measures such as the Temporary Import for Export Processing scheme to support export-oriented processors amid the domestic scarcity.

Production coconuts in Sri Lanka

In kind, 2017-2020, K t

From 2017 to 2020, Sri Lanka ranked as the world's fifth-largest producer of coconuts.

Top producers of coconuts, 2017-2020

World map of production of coconuts, 2017-2020

Sri Lanka's coconut production volume declined after two consecutive years of growth. In 2020, the country produced 2,234 thousand tonnes of coconuts, marking a 9.5% decrease compared to the previous year. Over the 2017-2020 period, production overall increased by 14%, with a compound annual growth rate of 4.5%. The peak production was recorded in 2019 at 2,469 thousand tonnes, which also saw the largest annual increase of 17.7%.

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

Exports coconuts from Sri Lanka

Exports in kind, t

The market displayed an unstable trend throughout the timeframe. Exports reached their lowest point in 2018 at 39,635 tonnes and peaked in 2019 at 77,412 tonnes, showing a two-fold difference between these years. In 2020, Sri Lanka exported 54,981 tonnes of coconuts, reflecting a sharp year-over-year drop of 29.0%. The largest increase occurred in 2019, with a surge of 95.3%.

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

The structure of exports in kind from 2017 to 2020 was diversified, as the top three destinations—the United Arab Emirates (17.5% of exports in kind), Pakistan (15.3%), and India (12.7%)—collectively accounted for only 45.4% of total flows, with no single country holding a clearly dominant position.

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

In 2020, Sri Lanka's coconut export value amounted to 91,848 thousand US dollars, indicating a modest decrease of 7.1% compared to the previous year. Between 2017 and 2020, exports decreased by 5.6%, equating to an annualized decline of 1.9%. The lowest value was recorded in 2018 at 85,132 thousand US dollars, while the highest was in 2019 at 98,862 thousand US dollars. The largest decline occurred in 2018 at 12.5%, and the largest increase was in 2019 at 16.1%.

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

From 2017 to 2020, Sri Lanka's coconut exports in value terms were distributed across a broad set of markets. The top three destinations—the United States (15.5% of exports in value terms), India (10.9%), and Canada (9.0%)—together accounted for only 35.4% of total exports, with the remaining 64.6% spread among numerous smaller markets.

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 coconuts to Sri Lanka

Imports in kind, t

There were noticeable fluctuations in market performance during the period. Imports hit their lowest point in 2017 and peaked in 2018, varying by a factor of 31. In 2020, Sri Lanka imported 82 tonnes of coconuts, which is 60.5% lower than in 2019. The maximum value was recorded in 2018 at 2,120 tonnes. The largest decline occurred in 2019 at 90.3%, while the largest increase was in 2018 at 3,034.8%.

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

From 2017 to 2020, Indonesia accounted for 84.5% of total coconut imports in kind to Sri Lanka, with the remainder distributed across a wide range of smaller destinations.

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

The market showed signs of volatility over the observed period. Imports bottomed in 2017 and peaked in 2018, differing by a factor of 17. In 2020, Sri Lanka imported coconuts worth a total that reflected a steep year-over-year fall of 56.7%. The maximum value was recorded in 2018 at 2,071 thousand US dollars. The largest decline occurred in 2019 at 78.9%, and the largest increase was in 2018 at 1,568.6%.

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

From 2017 to 2020, the largest share of coconut imports in value terms to Sri Lanka came from Indonesia (67.6% of imports in value terms), the Philippines (4.9%), and Switzerland (1.2%), together comprising 73.6% of total flows.

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

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