• How does the palm oil industry contribute to Sri Lanka’s economy?
  • Q&A Explainer with Dr Erandathie Pathiraja Research Fellow, Institute of Policy Studies of Sri Lanka The palm oil industry in Sri Lanka saves USD 17 million annually in foreign exchange and contributes to the economy through employment and capital investments.
  • Will a ban on palm oil affect Sri Lanka’s economy?
  • The ban on oil palm cultivation has generated mixed opinions and sparked debates. Some argue it could negatively affect the economy, as palm oil contributes to Sri Lanka¡¯s edible oil requirements. The ban may increase reliance on imports, potentially impacting the country¡¯s trade balance and food security.
  • What are some criticisms of palm oil mills in Sri Lanka?
  • Some of the specific criticisms include groundwater depletion, water quality degradation, regeneration, siltation, floods, landslides, and palm oil mill effluent handling. These issues directly affect the surrounding communities and ecosystems. In Sri Lanka, RPCs were allowed to cultivate oil palms in marginal rubber lands.
  • What are the environmental concerns associated with oil palm cultivation?
  • Environmental concerns associated with oil palm cultivation involve deforestation and water degradation and health risks from edible oil consumption include concerns on cardiovascular diseases. While the evidence remains inconclusive, there is clearly a need for robust and unbiased technical analysis on this hotly disputed issue.
  • Why is oil palm cultivation banned?
  • Oil palm cultivation was allowed initially to reduce reliance on imported palm oil, but concerns over environmental and health impacts led to a decision to phase out cultivation within ten years.