Ceylon Chamber of Coconut Industries applauds Govt. for securing 20% US tariff rate

Tuesday, 5 August 2025 02:22 -     - {{hitsCtrl.values.hits}}

  • Says US is largest market for SL coconut products
  • Asserts playing field levelled with competitors Indonesia, Vietnam and the Philippines now enjoying marginal 1% advantage
  • Points out that coconut industry exports grew 32% YoY to $ 537 m in 1H

 

The Ceylon Chamber of Coconut Industries in a statement extended its “sincere appreciation” to President Anura Kumara Disanayake and the negotiating team for securing a reduced 20% reciprocal tariff from the US. 

“As our largest export market for coconut products, this achievement marks a critical win for the industry, helping Sri Lankan exporters compete more fairly with key regional players such as Indonesia, Vietnam, and the Philippines, who currently enjoy a marginal 1% lower rate,” the Chamber said.

  • Trump tariff concessions advantageous but challenges formidable, warns Karu Jayasuriya 

It also thanked the negotiating team, led by Treasury Secretary Dr. Harshana Suriyapperuma, for their sustained and strategic efforts since the initial tariff announcement. “Their commitment has been instrumental in delivering a fairer and more competitive trading environment for Sri Lankan exporters.”

The Chamber said the revised tariff brings Sri Lanka’s coconut exporters into closer alignment with regional competitors while preserving access to the high-value US market. Despite ongoing raw material shortages and climate-related challenges, Sri Lanka’s coconut industry has shown strong resilience. According to the latest Export Development Board (EDB) data, exports reached $ 537 million between January and June 2025, a 32% increase year-on-year, contributing 8% to total merchandise exports. The sector is on track to surpass the $ 1 billion milestone this year, reaffirming its role as a key revenue earner for the country.

However, it is important to note that this growth has been driven largely by higher market prices, rather than increased volumes. As competitor countries begin to recover more quickly, Sri Lanka must urgently address domestic supply constraints to sustain its competitive position.

“We therefore urge the Government to accelerate the implementation of short-, medium-, and long-term strategies to support raw material availability. In particular, smallholders—who account for 85% of coconut plantations—must be supported through greater access to affordable fertiliser, irrigation tools, and planting material. Expanding the cultivated area through public-private collaboration will be critical to ensuring long-term supply stability.”

A stable, affordable domestic coconut supply will benefit both the local consumer and the export sector, strengthening livelihoods, enhancing rural development, and boosting foreign exchange earnings. 

“We also thank US President Donald Trump and the American people for their considerate approach towards Sri Lanka,” the statement concluded.

 

 

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.

COMMENTS

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.