The Hon. Dayasiri Jayasekara, Attorney-at-Law

¶ 01 Hon. Presiding Member, on regulations under the Imports and Exports (Control) Act, I wish to address the serious crisis in the coconut industry. This is not mere lamentation. Typically, about one million acres are under coconut, with around 55 million healthy trees, yielding an expected 3,100 million nuts annually. Average per tree is about 55 nuts, which we sought to raise to 70, but there is now a grave problem.

¶ 02 Compared to last year, we earned about USD 782 million from coconut-based exports, registering roughly 20 percent growth, with plans to increase to USD 850 million. Total revenue from these exports is around Rs. 11.6 billion, with significant benefit to the sector, targeting Rs. 1.5 billion over the next two to three years. But the current shortage is severe. We highlighted this repeatedly, including at COPE under Hon. Anura Dissanayake. Though three institutions exist—the Coconut Research Institute, Coconut Cultivation Board and Coconut Development Authority—none performed adequately. We warned the Research Institute about the devastating whitefly infestation; no effective action followed, and estates are now ravaged.

¶ 03 If we do not adopt a proper plan addressing reduced fertilizer use and land fragmentation, we will face a major crisis. The Institute predicts a shortfall of about 200 million nuts next quarter. Properly developed, this sector can earn USD 2.75-3.0 billion annually, but it is now faltering.

¶ 04 Products like coconut water, milk and oil are exported significantly to Europe, Asia-Pacific and North America. Value-added fragrance products from coconut are growing. Coir products and cocopeat have major potential, with demand exceeding 30 percent growth across many countries—Europe, North America, Australia, China, Korea, Uzbekistan, Azerbaijan and others.

¶ 05 There is now fearmongering about coconut imports. But note Thailand: though its production is low, it imports raw coconut to sustain value-added exports. Controlled imports are key.

¶ 06 For desiccated coconut and coconut milk production, if we do not supply industry demand, we will face crisis. Today, thambili (king coconut) is Rs. 230-240 per kilo equivalent; people are selling nuts for fresh consumption, constraining industry. I urge Government: carefully import coconuts. Do not panic about criticism claiming “they even import coconuts now.” Previously, imports were channeled to BCC Lanka Ltd. and a few others; they brought in substandard coconuts. The correct approach is to allow processors to import under strict conditions solely for processing, not retail, and also allow them to import directly—otherwise it will fail. Officials pushing tenders to hand over to parastatals leads to poor-quality consignments.

¶ 07 I also note coconut husk (shell) prices have risen to Rs. 160. Rather than merely suppressing husk purchases, support value addition—drip irrigation, fertilizer inputs—so imports become unnecessary. Consider importing whole coconuts if needed, in consultation with the National Plant Quarantine Service. Globally, countries are investing to develop these products.

¶ 08 With rockwool and peat moss being rejected internationally, we have a big opportunity in cocopeat. Saudi Arabia has placed large orders tied to planting billions of trees; their main request is cocopeat. If we cannot supply, and if we cannot produce 4.5 billion nuts when needed, this industry will collapse. We currently discuss 3.0 billion nuts; to expand, we need 4.5 billion. To bridge the gap in the short term, import coconuts for processing after coordinating with Plant Quarantine, and allow qualified companies to procure husks for value-added exports. This is a high-value industry; please act for the country’s interest. When good is done, the Opposition will support. If this industry falls, many rural jobs and foreign exchange will be lost. Strengthen exports. Thank you.