Sri Lanka can annually save over USD 60 million spent on palm oil and coconut oil imports if the government relaxes the restrictions imposed on the palm oil industry that was implemented several years ago.
“Currently there is a ban on new palm oil plantations and if this ban is lifted the plantation companies can replant under sustainable development strategies. This in turn will firstly help to reduce imports and save forex to Sri Lanka, said Oil Palm Producers Association. The Association members said that a head of a previous government gave the green light to go ahead with palm oil cultivation and plantation companies due to these guarantees invested over Rs. 700 million to start growing palm oil nurseries. However due to one sided unfair lobbying by pressure groups the government reversed their decision and banned the replanting of palm oil. It is also suspected that those who opposed the agitations of the small plantation owners demanding permission for oil palm cultivation are the people involved in oil importation.
“Due to this plantation companies lost over Rs. 1 billion which included planting and uprooting palm oil nurseries and also towards the upkeep of nurseries for two to three years.”
Sri Lanka is the only country that has laws to strictly restrict the cultivation of oil palm. “But Sri Lanka is at the top among the countries that can develop oil palm industry because it has suitable environmental conditions.”
The association said that to get the local economy on the right track, it is essential to reduce the import costs and increase the export revenue. The association emphasizes that global examples can confirm that the palm oil industry has sustainable solutions. “Currently there are thousands of acres of palm oil that have been grown for over 25 years and there is no environmental impact from it.”
“if this ban can be lifted, Palm oil can be grown again. This will help in totally reducing the import bill of edible oils, which can save a lot of money for the national economy.”
The association points out that India was the world’s leading importer of palm oil spending USD 8.72 billion for imports in 2021. “However Indian PM Narendra Modi took a strong decision to stop the cost of imports and earn foreign exchange for the country and resorted to Palm oil plantations and now India is moving swiftly towards self-sufficiently.
During 2019-2020, 350,000 hectares of oil palm were cultivated in India. The goal of President Modi is to expand that amount to one million hectares by 2025-2026 and by 2030 be an export nation of palm oil and bring in FOREX.
“Sri Lankan government too should take a leaf from this and lift this bad.” (SS)
