Non coniferous wood fuel market in Sri Lanka

Earlier Report Observations

Between 2018 and 2019, the market for non-coniferous wood fuel in Sri Lanka began a gradual contraction. Initial government policy in 2018 supported organic fertilizer production from Gliricidia trees, which also created a potential new source for wood fuel, while innovators developed more efficient stoves for urban users. However, a decisive shift occurred in 2019 when a government subsidy on LPG significantly lowered its retail price, making it a far more attractive cooking fuel and causing a collapse in demand for wood fuel stoves, which accelerated the market's decline.

The trend of decreasing market volume continued through 2020. A reversal in drivers emerged in 2021, as acute shortages and price hikes for domestic cooking gas led to a surge in demand for firewood. However, this increased demand did not translate into higher market volume due to concurrent supply constraints; sawmill output was strained, and adverse weather impacted the availability of both firewood and clay stoves, preventing market growth.

From 2022 to 2023, massive LPG price increases sustained strong consumer demand for firewood as an alternative. Nonetheless, the total supply and official market volume continued to shrink. This was primarily due to limited and unsustainable wood extraction from forests, raising environmental concerns, and a noted lack of dedicated forest cultivation for fuelwood. The market response included calls to promote fast-growing tree species and the emergence of wood pelletizing plants, pointing toward a structural shift aimed at creating a more sustainable supply chain for wood-based energy.

Production non coniferous wood fuel in Sri Lanka

In kind, 2017-2020, K m³

Top producers of non coniferous wood fuel, 2017-2020

World map of production of non coniferous wood fuel, 2017-2020

Sri Lanka's production of non-coniferous wood fuel has declined for the third year in a row. In 2020, the country produced 4,449 thousand cubic meters, marking a slight decrease of 1.7% from the previous year. Over the 2017-2020 period, production fell by 5%, with an average annual decline of 1.7%.

Annual dynamics of production in Sri Lanka in kind, 2017-2020, K m³

Exports non coniferous wood fuel from Sri Lanka

Exports in kind, m³

Sri Lanka's exports of non-coniferous wood fuel have increased for the second consecutive year. In 2019, the country exported 78.90 cubic meters, which is 366.5% higher than in 2018. Between 2017 and 2019, exports surged by 17,589.7%, representing an annualized growth rate of 461.4%.

Annual dynamics of product's exports from Sri Lanka in kind, 2017-2020, m³

From 2017 to 2020, the United Arab Emirates accounted for 82.0% of Sri Lanka's total non-coniferous wood fuel exports by volume, with the remainder distributed among a variety of smaller 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, $ US

The export market for non-coniferous wood fuel showed significant volatility during the observed period. Exports varied by 125-fold, reaching a low in 2017 and peaking in 2018. In 2019, Sri Lanka exported $5,436 worth of non-coniferous wood fuel, a sharp decline of 89.1% from the previous year. The highest value was recorded in 2018 at $50,098, with the largest increase occurring that year at 12,438.2%.

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

Between 2017 and 2020, Japan and France were the dominant destinations for Sri Lanka's non-coniferous wood fuel exports by value, with Japan accounting for 64.0% and France for 24.1% of total flows. Together, they made up 88.1% of exports, while other partners handled the remaining share.

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 non coniferous wood fuel to Sri Lanka

Imports in kind, m³

In 2020, Sri Lanka's imports of non-coniferous wood fuel totaled 0.06 cubic meters, representing a steep decline of 99.1% from 2019. Over the 2017-2020 period, imports decreased by 99.1%, with an average annual reduction of 79.2%.

Annual dynamics of product's imports to Sri Lanka in kind, 2017-2020, m³

From 2017 to 2020, Bulgaria was the leading source for Sri Lanka's non-coniferous wood fuel imports by volume, holding a 97.2% share of total 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, $ US

In 2020, Sri Lanka imported $492 worth of non-coniferous wood fuel, a sharp drop of 89.0% compared to 2019. Between 2017 and 2020, imports fell by 92.4%, translating to an average annual decrease of 57.6%.

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

During the 2017-2020 period, Bulgaria remained the primary source for Sri Lanka's non-coniferous wood fuel imports by value, accounting for 72.3% of total flows, with the rest spread across other fragmented markets.

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

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