CCCI says US tariffs threaten $857 m coconut export industry

Calls for urgent Govt. action, US engagement and tariff relief talks

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THE Ceylon Chamber of Coconut Industries (CCCI) yesterday issued an urgent appeal to the Government in response to the US'decision to impose a 30% import tariff on coconut-based products from Sri Lanka, effective 1 August. The move threatens to upend one of the country's most valuable export sectors, which currently generates over $ 857 million in annual revenue, and risks pushing thousands of rural livelihoods into uncertainty.

The US is Sri Lanka's single largest buyer of coconut-based products, accounting for more than 20% of the sector's exports, valued at roughly $160 million each year.

According to the CCCI, the new tariff all but destroys Sri Lanka's price competitiveness in the US market. Competing suppliers such as the Philippines, Vietnam, and India enjoy preferential trade access, meaning Sri Lankan products, despite their globally renowned quality, will be sidelined on cost alone.