Opposition MP Harsha de Silva has warned that the government’s proposed duty on coconut oil imports could undermine Sri Lanka’s coconut export industry, reduce foreign exchange earnings and negatively impact farmers and workers.
In a post on ‘X’, de Silva said Sri Lanka’s coconut export sector has significant potential to generate foreign exchange, but industry stakeholders have raised concerns over the impact of the proposed tax measure.
“The core concern: the new duty would push import costs to Rs. 1,250–1,400/kg, shifting local coconuts away from value-added exports toward domestic oil production, collapsing farmgate prices, killing export contracts, and ironically generating zero duty revenue since imports would stop altogether,” he said.
According to de Silva, the proposed duty could result in lower export earnings, reduced government revenue and place the industry under severe pressure by the third and fourth quarters of 2026.
De Silva said he had raised the issue directly at the Committee on Public Finance (COPF), urging the government to carefully assess the proposal’s implications.
“This government needs to think carefully. Bad tax policy doesn’t just hurt industry, it hurts the farmers and workers behind it,” he added. (Newswire)