Lanka's coconut industry faces major setback as US slaps 30% tariff

The Ceylon Chamber of Coconut Industry (CCCI) has issued an urgent appeal to the government in response to the United States' decision to impose a 30% tariff on coconut-based products from Sri Lanka, effective August 1, 2025.

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"The move threatens to upend one of the country's most valuable export sectors, which currently generates over USD 857 million in annual revenue, and risks pushing thousands of rural livelihoods into uncertainty," a CCCI has said in a media statement.

The United States is Sri Lanka's single largest buyer of coconut-based products, accounting for more than 20% of the sector's exports, valued at roughly USD 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.