Sri Lanka’s coconut industry, a key pillar of its agricultural economy, is facing renewed challenges as prices fell at the latest weekly auction, despite a modest recovery in production earlier this year. According to Coconut Development Authority (CDA) data, the average price for 1,000 coconuts dropped by 5.4 percent to 133,623 rupees at the August 16 auction.

Auction volumes also reflected uncertainty in the market. The number of coconuts offered fell to 658,480 from 751,836 a week earlier, while sales rose slightly to 582,000 nuts compared to 523,823 previously.

On the ground, wholesale prices ranged between 170–180 rupees for a large nut and 140–160 rupees for smaller ones, while farmgate prices in Kurunegala — Sri Lanka’s main coconut belt — stood at 120–155 rupees per nut.

 Meanwhile, copra traded at 120,000–125,000 rupees per 250 kg, and local coconut oil prices ranged from 880,000 to 900,000 rupees per metric ton.

Central Bank figures show coconut production had risen 18.3 percent year-on-year in June 2025, with output climbing from 170 million nuts in January to 289.5 million by mid-year.

This recovery followed drought-hit declines in late 2024, when adverse weather and irregular rainfall severely impacted cultivation. However, growers and exporters warn that the improvement is fragile.

Exports of coconut-based products such as desiccated coconut, virgin coconut oil, coir, and activated carbon continue to contribute significantly to foreign exchange earnings, but shipments have slowed this year.

Provisional data shows that in the first seven months of 2025, coconut product exports brought in around USD 450 million — a decline compared to USD 510 million during the same period in 2024.

 Industry analysts attribute the slowdown to inconsistent production, volatile global demand, and competition from the Philippines and Indonesia, the world’s two largest coconut producers.

The structural problems in Sri Lanka’s coconut sector go beyond temporary price fluctuations. Smallholder farmers, who account for nearly 80 percent of coconut cultivation, struggle with rising input costs, aging trees, land fragmentation, and a lack of access to modern technology.

Erratic weather patterns linked to climate change have also worsened yields in traditional growing regions such as Kurunegala, Puttalam, Gampaha, and parts of the Southern Province.

 Industry stakeholders argue that the absence of a coherent government policy has left the sector vulnerable. Although successive governments have promised replanting programs, irrigation schemes, and research investments, progress has been slow.

Experts stress the need for an integrated national coconut policy focusing on replanting with high-yielding varieties, promoting value-added exports, expanding irrigation facilities, and ensuring price stabilization for farmers.

Without a strategic approach, Sri Lanka risks losing its competitive edge in global markets. As one industry representative put it, “We have the potential to double coconut export earnings within five years, but only if policymakers treat this industry as a national priority.”

Thailand’s government has approved the recruitment of 10,000 Sri Lankan workers as part of its drive to plug a deepening labour shortage, a move that reflects both the country’s growing demographic challenge and its dependence on foreign labour.

The decision, announced by Labour Minister Pongkawin Jungrungruangkit, comes in the wake of a mass exodus of Cambodian workers who returned home after a deadly border conflict last month.

The fighting, the worst in decades, killed at least 43 people and displaced more than 300,000 on both sides before a fragile ceasefire was struck.

Before the clashes, over 520,000 Cambodians were employed in Thailand, making up nearly 12% of its foreign workforce. An estimated 400,000 have since returned home, leaving serious gaps in key industries.

Thailand, already grappling with a fast-ageing population and shrinking domestic workforce, has relied heavily on foreign labour to sustain its economy.

According to the International Labour Organization, at least three million registered foreign workers are employed in agriculture, construction, and manufacturing.

With fertility rates dropping and one in five Thais projected to be over 60 by 2035, the government faces mounting pressure to secure a steady inflow of migrant workers.

Sri Lanka has emerged as a major source. More than 30,000 Sri Lankans have registered, with the first batch of 10,000 expected to depart soon. Bangkok is also opening doors to workers from Nepal, Bangladesh, Indonesia, and the Philippines to ensure supply continuity.

For Sri Lanka, the opportunity is significant. Labour migration remains the largest source of foreign exchange for the island nation, which sent a record 314,786 workers abroad in 2024 amid ongoing economic struggles.

While the Middle East continues to be the top destination, demand from East and Southeast Asia, particularly South Korea, Japan, and now Thailand, is rising rapidly.

However, analysts warn that the Thai government’s plan may not be without risk. On the one hand, the influx of Sri Lankan and other

South Asian workers will stabilize industries reliant on low-cost labour and cushion the economy from immediate shocks caused by the Cambodian exodus.

On the other hand, critics argue that excessive reliance on foreign labour could strain social services, spark cultural tensions, and potentially erode wages for local workers.

For Thailand’s ruling socialist-leaning coalition, the move is politically delicate. While business groups welcome the decision, opposition parties could exploit fears over job competition and national identity.

If mismanaged, the migrant recruitment drive may dent the government’s popularity, particularly among its rural voter base, who already feel neglected in the country’s economic model.

In the long run, Thailand faces a difficult balancing act: meeting urgent labour demands while addressing demographic decline and safeguarding social stability.

Whether the recruitment of 10,000 Sri Lankans is a temporary fix or the beginning of a deeper shift in Thailand’s labour strategy remains to be seen.

A few showers will occur in the Western and Sabaragamuwa provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts.

Mainly fair weather will prevail over elsewhere of the island.

Fairly strong winds of about (30-40) kmph can be expected at times over Western slopes of the central hills.

By:Staff Writer

August 19, Colombo (LNW): Sri Lanka’s power sector is moving into a new phase of modernization as the Ceylon Electricity Board (CEB) accelerates efforts to upgrade its transmission network to improve efficiency, reduce breakdowns, and integrate renewable energy into the national grid.

 Power and Energy Minister Eng. Kumara Jayakody gave directives this week to fast-track the program, which falls under the National Transmission and Distribution Network Development and Efficiency Improvement Project (Package 02 – Grid Substations). The instructions came during an inspection tour of two newly completed substations in Kirindiwela.

New Substations to Strengthen Reliability

Under this project, three new facilities are being developed: the Battaramulla 132/33kV (domestic) substation, the Kirindiwela 132/33kV grid substation, and the Kirindiwela 220/132kV switching station. Two of the Kirindiwela units were opened for ministerial inspection.

The completion of the Kirindiwela switching station will allow hydropower generated at the Mahaweli and Kelani power plants to be transmitted more effectively to the Western Province. This will enhance system reliability by converting the current single transmission path into a multi-path network, significantly reducing the risk of power outages.

The new facility will also increase the transmission capacity of the Western Province’s 132kV network by 500 MW, while the Kirindiwela substation alone will boost distribution capacity by 63 MW. This expansion will help meet the rising demand for electricity in Kirindiwela, Yakkala, Kadawatha, and nearby areas, ensuring a more stable supply for both households and industries.

Boost for Renewable Integration

A key benefit of the upgraded system is its ability to integrate more renewable energy into the national grid. The strengthened network will allow household rooftop solar power in the Western Province to be absorbed more efficiently. In addition, it will prepare the grid to accommodate large-scale renewable energy projects planned across the island, from solar to wind and hydropower.

By minimizing electricity losses through reduced transmission resistance, the project will also increase overall system efficiency and lower costs in the long run.

Wider Expansion Plans

Beyond Kirindiwela and Battaramulla, the modernization program will expand to cover substations in Kosgama, Kotmale, Padukka, Pannipitiya, Ratmalana, Seethawaka, Thulhiriya, Veyangoda, Nawula, Polpitiya, and Ukuwela. These upgrades are expected to reinforce the backbone of Sri Lanka’s national power transmission system.

Minister Jayakody stressed the need for rapid completion of these projects, assuring officials that his ministry would extend full support to overcome any challenges during implementation.

The CEB’s transmission modernization initiative marks a critical step in strengthening Sri Lanka’s energy security, ensuring a more reliable supply for consumers, and enabling the shift toward a 70% renewable energy target in the coming years

August 19, Colombo (LNW): Speaker of Parliament Dr Jagath Wickramaratne has formally endorsed the certificate on the Sri Lanka Electricity (Amendment) Bill, officially enacting it into law as the Sri Lanka Electricity (Amendment) Act, No. 14 of 2025.

This legislative milestone follows the passage of the Bill in Parliament on August 06, where it was approved during its Third Reading with a majority of 96 votes.

The newly enacted law introduces a number of structural and policy reforms aimed at modernising Sri Lanka’s power sector and aligning it with broader energy and environmental goals.

Among the most notable changes introduced under the Act is the replacement of the long-standing National Electricity Advisory Council with a more strategically aligned framework for developing a National Electricity Policy—which will now form a core part of the overarching National Policy on Energy.

Additionally, the Act replaces the term Wholesale Electricity Market with National Electricity Market, signalling a broader redefinition of how energy is traded and regulated in the country. The new market model is underpinned by key objectives: ensuring the delivery of uninterrupted and affordable electricity, encouraging efficiency across the system, reducing the carbon footprint of power generation, and boosting investment in renewable energy sources.

The Bill, introduced by the government earlier this year, sparked considerable debate both within and outside Parliament. It was met with legal challenges, including petitions filed before the Supreme Court by various stakeholders, such as the Ceylon Electricity Board Engineers’ Union. Concerns raised ranged from governance transparency to the potential impact on national energy security and public accountability.

However, the Supreme Court determined that, subject to certain amendments, the proposed legislation was in line with constitutional provisions—paving the way for its passage and eventual certification by the Speaker.