Govt. gives green light for palm oil planting, subject to convincing public on benefits

The government has given the green light for palm oil plantations to recommence planting, the Palm Oil Industry Association (POIA) said at a media roundtable discussion on “The Role of the Palm Oil Industry in Sri Lanka’s Economy and Development” held today.

The Ministry of Plantation Industries has stated that the government does not oppose the move, and that it is now up to the POIA to educate the public on the benefits of the industry.

“They must also convince the public that palm oil cultivation does not have any negative impact on water tables,” officials said.

There are around 10,800 hectares of palm oil plantations in Sri Lanka, and the government has indicated plans to permit a further 8,000 hectares.

Yasith De Silva of POIA said palm oil cultivation was banned in April 2021, creating a major negative impact on stakeholders and resulting in a higher import bill for palm oil.

“Last year, the palm oil import bill was more than Rs. 1.4 billion, increasing from around Rs. 875 million in 2024,” he said.

“The lifting of the ban will result in plantation companies reinvesting in the sector and creating jobs. The most important aspect would be the significant reduction of the import bill within five years.”

Professor Asoka Nugawela said palm oil workers earn the highest wages in the plantation sector while working fewer hours.

He added that, in addition to the economic contribution, the industry also offers benefits in terms of nutritional value and biodiversity. (Shirajiv S)