Sri Lanka’s coconut exporters have raised serious concerns over a 30 percent tariff imposed by the United States, warning that the move could severely damage the country’s $857 million coconut export industry and put hundreds of thousands of rural livelihoods at risk.
According to the Ceylon Chamber of Coconut Industry (CCCI), roughly $160 million—or nearly 20 percent—of Sri Lanka’s annual coconut-based exports are shipped to the United States.
The newly announced tariff, part of U.S. President Donald Trump’s revised trade framework, will leave Sri Lankan products such as desiccated coconut, virgin coconut oil, coconut milk, and coir-based goods priced out of the American market.
“Our products are globally recognised for their purity and nutritional value but no matter how good they are, a 30 percent tariff makes them unaffordable for buyers. This isn’t about quality anymore—it’s about cost,” said Jayantha Samarakoon, Chairman of the CCCI.
The Chamber pointed out that competing suppliers like the Philippines, Vietnam, India, and Indonesia now enjoy preferential or reduced tariff access to the U.S. Vietnam and Indonesia, in particular, were recently granted lower tariff rates—down to 19 percent—after offering duty-free access for American goods in return.
In contrast, Sri Lanka’s protectionist trade stance has long kept import duties on vegetable oils high—ostensibly to protect domestic producers.
Analysts say this has backfired, limiting the country’s leverage in securing reciprocal trade benefits.
Notably, Sri Lanka imposes steep taxes on soybean oil, a major U.S. export, while countries like Saudi Arabia and Kuwait maintain much lower import duties.
The CCCI warned that if U.S. demand falls, the domestic market may be overwhelmed with unsold products, causing farmgate prices to collapse. Over 800,000 Sri Lankans rely on the coconut industry, including 150,000 directly employed in manufacturing and processing.
“The livelihoods of smallholder farmers, factory workers, and exporters are under immediate threat,” the Chamber said, adding that falling exports may also deter future foreign investment.
The Chamber urged the government to immediately engage with the U.S. Trade Representative to seek tariff relief or exemptions.
It also called for a renewed push for bilateral trade agreements that secure fair market access, and temporary support measures to help exporters withstand the shock.
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