Government mulls reversing palm oil cultivation ban

Sri Lanka is likely to reverse the ban on oil palm cultivation and its importation in an effort to ensure the flourishing of grassroots economies via expanding cultivation for the benefit of plantation companies and smallholders, informed sources confirmed.

A close aide to President Ranil Wickremesinghe said that the government plans to remove palm oil prohibition in January 2024 correcting the previous policy decision taken by the previous Gotabaya Rajapaksa regime in April 2021.

Mr. Rajapaksa who was the then President ordered the ban on the importation of palm oil into Sri Lanka and its cultivation directing to uproot the existing oil palm cultivations locally in 2021.

The presidential aide noted that he would discuss with the president and ensure the ban is lifted while permitting palm oil cultivation in the country once again following consultations with experts in the industry.

According to an association of palm oil growers, an acre of palm oil cultivation can generate an average income of Rs.100,000 a month. At present, Sri Lanka consumes 220,000 metric tonnes of palm oil of which only 12 per cent is produced locally.

Palm oil provides livelihood opportunities for a large number of farmers and also for the Sri Lankan farmers and workers in remote rural areas where work is hard to find.

The sector also provides sustainable livelihoods for both farmers and producers and has alleviated millions out of abject poverty, and transform them into a thriving middle class.

Palm oil is used by Sri Lankans in almost every aspect of life; from toothpaste to shampoo to soap to lipstick to confectionery – palm oil is an integral component. It is in 50 per cent of all consumer products and vital for industrial applications, several industrialists pointed out.