Edible oil tax reform triggers industry and consumer concern By Bandula Sirimanna View(s): View(s):Sri Lanka’s latest overhaul of taxes on imported edible oils has drawn sharp opposition from coconut oil producers and consumers, who say the move could create an unstable market and undermine several important reforms implemented over the last few years. The SCL, which has been in effect for nearly five years, levied a fixed tax on imported coconut oil, palm oil, and sunflower oil regardless of the declared value of imports. At the moment, import of raw coconut oil is subject to a flat rate of Rs.150,000 per tonne, while raw palm oil is charged Rs. Similarly, the total tax liability of importing palm oil, including VAT, will be around Rs. This is a major shift from the current system, where the tax liability of importing coconut oil will almost triple, while the tax liability of importing palm oil will be reduced substantially several edible oil producers and importers said.

Source: Sunday Times February 08, 2026 05:00 UTC