AreaSri Lanka

Commodity GroupOilseeds, oils and meals

CommodityPalm oil

Date01/04/2021

Policy CategoryProduction

Policy InstrumentAgricultural policies/import measures

DescriptionBanned the establishment of new oil-palm plantations and proposed the gradual replacement of existing plantations with alternative crops such as rubber, citing environmental concerns. Also introduced a ban on palm oil imports, but subsequently eased the import restriction for selected refined palm oil products used by the domestic bakery, confectionary and food processing industry.

NotesSRI LANKA – import policy: In April, following the detection of aflatoxins in imported coconut oil and considering the practice of local edible oil manufacturers to mix palm oil and coconut oil, Sri Lanka’s President ordered to ban palm oil imports and proposed to consider measures to restrict oil palm cultivation throughout the country. Subsequently, recognizing that several domestic industries rely on imported palm oil for their operations, the Government decided to exempt certain refined palm oil-based products from the import ban.