Consumer Rights groups have warned that the government’s proposal to remove the special tax on coconut oil and palm oil could lead to increased mixing of low-quality oils in the market, posing health risks to consumers.

Speaking at a media briefing in Colombo, the National Movement for the Protection of Consumer Rights Chairman, Ranjith Withanage, said the proposed change could also trigger a rise in local coconut oil prices, particularly from April 1 onwards.

Withanage warned that the removal of the tax may result in a higher influx of palm oil and other less healthy alternatives into the market. He noted that, according to medical experts, only coconut oil is considered safe for deep frying, while palm oil and similar oils may increase health risks.

He also expressed concern that local coconut oil supplies could shrink due to increased exports of coconuts by manufacturers focusing on foreign markets.

This, he said, could lead to shortages in the domestic market, forcing consumers to shift toward palm oil and other substitutes. (Newswire)

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A new Cabinet paper is being prepared to permit only pre-packaged coconut oil to be sold in the local market, Chairman of the Coconut Development Authority, Shantha Ranatunga, said.

Addressing the media, he said that the measure is being taken in an effort to standardize and regulate the sale of coconut oil in the market.

“Coconut oil sold in bags, old containers, and bottles will be illegal in future. Raids will be conducted by the Consumer Affairs Authority against those violating the regulations, and legal action will be initiated,” he added.

Shantha Ranatunga said that a grace period of between 06 to 08 months or a year will be granted for manufacturers and retailers to adjust to the new regulations. (Newswire)

“Coconut oil sold in bags, old containers and bottles will be illegal in future,” Chairman of the Coconut Development Authority Shantha Ranatunga says a new Cabinet paper is in motion to permit only pre-packaged coconut oil to be sold, in an effort to standardize and regulate the… pic.twitter.com/O0PHBxJpLn

— NewsWire (@NewsWireLK) July 15, 2025

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Two suspects have been arrested in Polonnaruwa for the possession and transportation of over 15,000 litres of coconut oil unfit for human consumption.

The suspects were arrested in the Karmanthapuraya area during a joint raid conducted by officials from the Polonnaruwa Public Health Inspectors’ Office and the Police STF last night. 

One suspect was arrested on charges of transporting substandard coconut oil, while the other was arrested for the possession of the goods.

The suspects, aged 41 and 51 years, are residents of the Pannala and Sandhiveli areas. 

35 steel barrels with 7,700 litres of substandard coconut oil, 36 barrels with 7,920 litres of coconut oil, and the lorry used to transport the goods were seized during the raid. 

The Polonnaruwa Public Health Inspectors’ Office is conducting further investigations. (Newswire)

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Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe says coconut oil unfit for human consumption has been found in the local market.

Addressing the Parliament today, Minister Samarasinghe said the presence of coconut oil unfit for human consumption has been found during routine inspections conducted by the Consumer Affairs Authority (CAA). 

“It has been identified through a market sample test conducted by the Consumer Affairs Authority that coconut oil available in the market is not in accordance with the required standards. Substandard coconut oil is being produced by local manufacturers without a proper understanding of quality and is released into the market. Additionally, some manufacturers intentionally produce substandard products to reduce production costs and gain higher profits, and release them into the market,” he said. 

Outlining the measures taken by the government to prevent such substandard coconut oil from entering the local market, Minister Wasantha Samarasinghe said this was another kind of racket happening in Sri Lanka at present.

“We bring refined and unrefined coconut oil. We have identified that there are companies operating for 11 months. They are closing down the company without preparing accounts for the 12th month. Therefore, we will take legal action on our part. The goods coming into Sri Lanka through customs have already been identified,” he added. 

Minister Wasantah Samarasinghe made the remarks in response to questions raised by opposition MP Chaminda Wijesiri in this regard. (Newswire)

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Minister of Agriculture and Plantation Industries Mahinda Amaraweera says measures are being taken to address the rise in the price of coconut oil in the market.

Minister Amaraweera revealed that currently, the government charges Rs.150 per litre of imported coconut oil. 

He further said that as the Minister of Agriculture and Plantation Industries, he will propose a reduction of this amount to the Cabinet. 

Stating that as per the Coconut Development Authority, Sri Lanka’s annual coconut oil requirement is 25,868 metric tons, the minister said currently, there are 51,457 metric tons of coconut oil available.

Minister Amaraweera made these remarks during a press briefing held at the Presidential Media Centre on Wednesday (June 26). (Newswire)

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Officers of the Consumer Affairs Authority (CAA) have raided a retail store selling substandard coconut oil in the Bokundara area in Piliyandala.

According to Ada Derana, CAA officials had raided the store on Wednesday (Sep 27) based on a complaint.

The store was found to have falsely displayed the quality standard certification issued by the Coconut Development Authority on its name board misleading the public. 

The quality standard certification of the Coconut Development Authority is only provided to stores selling bottled coconut oil displaying the manufacture and expiry dates.

However, the store was found to be selling coconut oil in cans and other containers to the public, violating the regulations of the quality standard certification of the Coconut Development Authority.

Officers of the Consumer Affairs Authority who raided the store have raised suspicion on the quality of the coconut oil sold at the retail store.

The officers had also seized nearly 19 litres of substandard coconut oil that was found in the store. (NewsWire)

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