US tariff cut Sri Lanka coconut exports are gaining momentum after the government secured a 20% reciprocal tariff rate, enhancing competitiveness in the country’s largest export market.
The US tariff cut Sri Lanka coconut industry has long sought is now in place, thanks to recent trade negotiations between Sri Lankan authorities and the United States. The Ceylon Chamber of Coconut Industries officially thanked President Anura Kumara Dissanayake and the team led by Treasury Secretary Dr. Harshana Suriyapperuma for securing a 20% US reciprocal tariff rate on coconut-based exports.
This adjustment is a critical step forward, bringing Sri Lanka closer to its regional competitors such as Indonesia, Vietnam, and the Philippines, who enjoy only a slight advantage with a 19% tariff rate. The US tariff cut Sri Lanka coconut exporters now benefit from is expected to help maintain and expand market share in one of the most valuable international markets.
The Chamber emphasized that this trade win comes despite ongoing challenges, including raw material shortages and climate-related setbacks. According to Export Development Board (EDB) data, Sri Lanka’s coconut exports rose by 32% year-on-year in the first half of 2025, reaching $537 million. Coconut products now contribute approximately 8% to total merchandise exports, and the industry is on track to cross the $1 billion milestone by year-end.
However, the Chamber noted that this surge has been primarily price-driven, not volume-based. For the US tariff cut Sri Lanka coconut exporters to yield long-term gains, domestic production must rise. To this end, the Chamber urged the government to fast-track support programs focused on smallholders, who manage 85% of coconut cultivation. Improved access to fertilizer, irrigation tools, planting material, and expanded growing areas are essential to stabilize supply.
A stronger, more sustainable supply chain would benefit both local consumers and the export market, the Chamber said, contributing to rural development and foreign exchange generation. The statement also extended gratitude to US President Donald Trump and the American public for their cooperative stance on trade access.
US tariff cut Sri Lanka coconut industry advocates see this development as a foundation for long-term trade competitiveness and rural economic growth.
