Spearheaded by HNB’s Agribusiness Unit together with CBL Cocos, the programme provides supply chain financing to registered farmer groups supplying directly to the company.
This enables them to access working capital during the coconut curing cycle, reduce reliance on intermediaries, and strengthen long-term participation in the value chain.
Sri Lanka’s coconut sector spans over 400,000 hectares and produces approximately 2.5 to 3 billion coconuts annually.
Despite contributing nearly USD 800 million in export earnings in 2024, the sector continues to face structural challenges, including aging tree stocks, low productivity, and limited access to tailored financial services for smallholders.
Commenting on the Bank’s role in driving agricultural development, HNB MD/CEO, Damith Pallewatte, noted:
“Our role as a development partner extends far beyond traditional banking.
By enabling smallholder farmer companies to access finance and directly participate in formal value chains, we are fostering economic resilience and sustainable livelihoods in Sri Lanka’s agribusiness communities.
Partnerships like this reflect our commitment to building inclusive financial ecosystems that empower farmer communities across the country.”
Reflecting on the significance of the partnership, Chief Executive Officer of Natural Food Cluster of CBL group, Randeewa Malalasooriya, stated:
“As Sri Lanka’s largest exporter of coconut milk, CBL Group is committed to transforming the coconut industry by equipping small and medium-scale farmers with the knowledge, skills, and facilities they need to improve harvest quality and maximize yield from every tree.
Over the years, our work with farmer companies has shown the untapped potential of empowering growers to achieve better harvests and build stronger agricultural communities.
With financial support reaching directly to farmers through this partnership, their capacity to invest, expand, and improve productivity will grow further, uplifting rural livelihoods and strengthening the future of Sri Lanka’s agricultural sector.”
To address long-standing challenges of low prices, limited financial capacity, and dependence on intermediaries during the curing period, CBL introduced a farmer company model.
More than 200 smallholders have now been registered, trained in crop management and primary processing, and supported to establish curing yards.
Long-term supply agreements with CBL Cocos ensure direct market access, while HNB’s financing will provide the capital needed to expand operations and participate more securely in the coconut value chain.
This collaboration underscores HNB’s ongoing efforts to enhance agricultural productivity and rural economic development through structured financing, capacity-building, and public–private partnerships, while CBL Cocos continues to lead efforts in farmer empowerment and sector transformation.
Together, the two organisations are bridging critical gaps in finance and market access to build a stronger, more inclusive future for Sri Lanka’s coconut industry.
HNB continues to lead Sri Lanka’s financial sector in delivering inclusive banking solutions that address the real-world challenges of underserved communities.