Sri Lanka’s Coconut Exports Hit Hard by Middle East Conflict

04-Apr-2026

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Sri Lanka’s coconut exports have faced significant setbacks due to ongoing conflict in the Middle East, according to Kalanithi Nayani, Director of the Coconut Research Institute.

She added that revenue from coconut product exports, which typically ranges from USD 1.2 billion to USD 1.8 billion annually, is likely to decline sharply this year. Key export markets for desiccated coconut, coconut milk, and coconut milk powder are in the Middle East.

The current conflict has disrupted shipments to these markets, compounded by rising shipping and transport costs, creating challenges for delivering domestic production internationally.

Locally, rising fuel prices have substantially increased production costs. Since Sri Lanka’s coconut exports are almost entirely dependent on the Middle East, the current market disruption has left a large quantity of coconuts unsold. Authorities recommend redirecting the remaining supply to domestic oil production.

Sri Lanka must explore alterntive markets, particularly in China, where Indonesia dominates, to recoup part of the lost revenue.