Oil palm ban to be lifted amid resurfacing environmental concerns?
The Ministry of Plantation and Community Infrastructure has reportedly received Cabinet instructions to formulate the criteria required to lift the ban currently imposed on oil palm cultivation in Sri Lanka.
In April 2021, Sri Lanka banned imports of palm oil and the establishment of new palm plantations and instructed producers to uproot existing plantations in a phased manner, amid strong opposition over the crop’s potential impact on the country’s ecosystems.
With a proposal now being put forward to expand cultivation once again, the debate over potential environmental damage has also returned to the forefront.
Previously, the Central Environmental Authority (CEA) had imposed strict restrictions on cultivation following a study conducted by a panel of experts.
At present, oil palm is cultivated on nearly 9,500 hectares of land in the country, while plantation companies have submitted requests to the government to further expand cultivation.
Accordingly, an expert committee appointed by the Ministry of Plantation and Community Infrastructure has reportedly recommended permitting oil palm cultivation on up to 20,000 hectares.
Water resources depleted
One of the main environmental concerns associated with oil palm cultivation in Sri Lanka is extensive water consumption.
A research study conducted at the Nakiyadeniya and Sapumalkanda estates in the Galle District of Sri Lanka’s low-country wet zone found that a single oil palm tree consumes significantly more water per day than a rubber tree.
According to the study, a single oil palm tree at the Nakiyadeniya Estate used around 239.49 litres of water per day, while the daily water consumption of a rubber tree was around 42.17 litres.
At Sapumalkanda, the respective figures were 277.94 litres and 53.07 litres.
However, the researchers pointed out that the study was conducted over a short period and that these figures cannot be directly applied to all cultivation areas in the country.
Another Sri Lankan study scientifically assessed the issue after complaints were received from residents regarding groundwater levels and the depth of wells in areas surrounding oil palm plantations.
The study compared water conditions in areas under oil palm and rubber cultivation with those in natural forest areas.
Impact on soil
A Sri Lankan study published in 2024 compared approximately 12-year-old oil palm and rubber plantations.
It found that the amount of organic carbon in the topsoil of oil palm plantations was around 40% lower than that of rubber plantations.
The researchers also noted that water loss from the soil was faster in oil palm plantations during dry periods.
Environmental concerns emerge in Kalutara and Galle
Oil palm cultivation in Sri Lanka is mainly associated with areas such as Galle, Kalutara, Matara, Ratnapura and Kegalle in the low-country wet zone.
A study conducted in 2024 on an oil palm plantation in the Neboda area of Kalutara identified significant differences in soil pH, electrical conductivity, organic matter content, nitrogen content and other properties between the cultivated land and a nearby comparison site.
The researchers emphasised that sustainable soil management in oil palm plantations is essential.
Previous environmental studies in Sri Lanka have also highlighted that expanding cultivation, particularly on hilly or sloping lands, could lead to issues such as soil erosion, the entry of agrochemicals into water, and impacts on the quality of water sources.
Impact on biodiversity
Another major debate surrounding oil palm cultivation concerns its potential impact on natural ecosystems and biodiversity.
Environmentalists point out that expanding cultivation, particularly around forest boundaries, riverbanks, catchment areas and other sensitive ecosystems, could affect natural habitats.
Environmental activists have also previously alleged that oil palm has spread naturally in certain areas, including areas surrounding the Kalu River.
Palm oil imports rise despite ban
Meanwhile, Sri Lanka’s demand for palm oil has not declined despite the ban on oil palm cultivation.
Sri Lanka imported 38,210 metric tonnes of palm oil in 2025, while coconut oil imports amounted to 33,696 metric tonnes during the same year.
A Wayamba University academic and former Director of the Rubber Research Institute has pointed out that more than Rs. 140 billion was spent on palm oil imports in 2025.
Those supporting the expansion of oil palm cultivation argue that producing palm oil locally could help save at least part of the expenditure on such imports.
Legal cases still pending
Meanwhile, it is also learnt that plantation companies have initiated several legal proceedings challenging the decision to ban oil palm cultivation in 2021.
The Ministry of Plantation and Community Infrastructure is currently obtaining advice from the Attorney General’s Department regarding the relevant cases, according to sources.
Upon inquiry, Minister Samantha Vidyaratne said that it has been planned to permit the expansion of oil palm cultivation up to 20,000 hectares after resolving the relevant legal proceedings and several technical matters relating to cultivation.
However, a key question remains as to what criteria will be imposed when selecting new cultivation areas, particularly regarding catchment areas, rivers and waterways, forest boundaries, areas of high biodiversity and sloping lands.
Therefore, environmental and economic experts are of the view that lifting the oil palm cultivation ban will not simply be an economic decision aimed at reducing palm oil imports, but a national policy decision linked to water resources, soil, biodiversity and long-term environmental protection.