Sri Lanka’s historic tea and coconut industries are entering a critical phase as the Government attempts to modernise international trade procedures through the newly introduced One TRADE digital platform, amid growing concerns over production constraints, declining tea export earnings and shortages of raw materials affecting coconut-based industries.
The two agricultural industries, which once generated substantial foreign exchange and established Sri Lanka’s reputation in international commodity markets, remain important contributors to the country’s export economy. However, their present challenges reveal that the introduction of modern trade technology must be accompanied by a comprehensive strategy to strengthen domestic production and industrial competitiveness.
According to the latest export figures released by the Sri Lanka Export Development Board, tea export earnings declined by 6.83% during January–September 2026 to US$1,083.58 million compared with the corresponding period last year.
The decline was mainly attributed to lower earnings from bulk tea and packet tea exports, which fell by 11.13% and 4.42%, respectively. Although tea bags and instant tea recorded growth, these improvements were insufficient to compensate for the overall contraction.
The coconut industry presents a more complicated picture. Coconut-based product exports generated US$942.5 million during the first nine months of 2026, recording 3.68% growth compared with the corresponding period in 2025.
However, the industry’s monthly performance has remained volatile. September earnings declined by 8.88% year-on-year to US$111.60 million, while coconut kernel products experienced particularly significant pressure.
Raw-material shortages have emerged as a major concern for coconut processors and exporters. Industry representatives have warned that inadequate supplies of coconuts and fibre are increasing production costs and making it difficult for manufacturers to fulfil international orders on time.
The Export Development Board has also held discussions with industry stakeholders over shortages affecting coconut coir and fibre-based manufacturers, despite the sector generating approximately US$294 million in export earnings during 2025.
Against this background, the Government’s One TRADE initiative offers an opportunity to eliminate unnecessary administrative delays and improve the efficiency of export documentation.
The platform, legally established under the Electronic Transactions Act through regulations gazetted on November 4, became effective on November 5. GovTech Sri Lanka (Pvt) Ltd has been appointed its authorised operator.
The initial implementation covers 124 tariff lines, including Ceylon tea, fresh and processed coconut products, copra, coir products and arrack.
Sri Lanka Customs, the Sri Lanka Ports Authority, the Sri Lanka Tea Board, the Coconut Development Authority, the National Plant Quarantine Service and the Food Control Administration Unit are among the participating institutions.
The electronic system allows traders to submit applications and declarations through one entry point, while authorised agencies can approve or reject applications within their existing legal powers.
Nevertheless, the country’s experience with traditional agricultural exports demonstrates that administrative reform alone cannot guarantee industrial revival.
Tea requires sustained investment in replanting, mechanisation, productivity and international branding. Coconut cultivation needs improved planting material, scientific management, expanded processing capacity and reliable raw-material supplies.
The Government must therefore ensure that One TRADE becomes part of a wider export transformation programme rather than another technology project measured merely by the number of applications processed.
For thousands of growers, factory workers, small exporters and plantation-dependent communities, the real measure of success will be higher incomes, stable production and stronger international markets.