Sri Lanka has the potential to export coconut products worth US $ 2-3 billion, Nestlé Lanka Chairman and Managing Director Bernie Stefan emphasised at a recent panel discussion.
He added that increasing the yield from the existing coconut plantations can make a huge difference and called for the urgent development of the Northern Coconut Triangle.
According to the Export Development Board, the export earnings of coconut and coconut-based products from January to October 2025 increased by 43.83 percent and surpassed US $ 1 billion compared to last year, a milestone for the country’s export sector. However, Stefan noted that there was a certain level of inefficiency in the supply chain of the coconut and coconut products export sector as well as in the labour market and called on the relevant stakeholders to look at how these issues can be addressed.
Nestlé Lanka currently exports coconut milk powder to 60 countries around the world, with India being the largest export market. The company also exports to the Caribbean region, North America and Japan.
“We have invested continuously in the factory to increase capacity to build new technologies and we invested in our factory for sustainability. For example, a biomass boiler that we inaugurated this year,” Stefan stated.
He noted that Sri Lanka remains ‘a good domestic market opportunity’, despite having a fairly small population, which is one reason why Nestlé continues to invest in the country. Nestlé Lanka will celebrate 120 years of service next year.
“We have been here a long time and we have very strong brands deeply rooted in people’s lives. We also see more opportunities because consumption is increasing and people have more money to spend,” Stefan said.
He added that while the impact of Cyclone Ditwah would affect the market, the long-term trend is moving in the right direction and Nestlé Lanka would have more varied or premium products to offer.
“We see some strong local opportunities for high-quality coconuts and coconut products that will have unique opportunities in the global market,” he stressed.
To support this growth, the Northern Coconut Triangle was launched in September this year, covering the Jaffna, Kilinochchi, Mullaitivu, Mannar and Vavuniya districts by linking Point Pedro, Silawathura and Kokkilai. According to the President’s Media Division, Rs.500 million was allocated from the previous budget to provide high-yield coconut saplings to the cultivators in the North and to develop 16,000 acres of new coconut plantations this year.
