Export Market of Coconut Shell Charcoal and Coconut Shell Activated Carbon in Sri Lanka: Drivers and Bottlenecks

Abstract

The study focused on identifying major drivers and bottlenecks for growth in exports of coconut charcoal and coconut shell activated carbon industry. Both primary and secondary data were collected for analysis. Primary data were collected from purposively selected top level managers and officers of Coconut Development Authority (CDA) and all charcoal and activated carbon producing companies that registered under CDA. Descriptive analysis and correlation analysis were performed to analyze the data. Under the correlation analysis, factors are evaluated separately with the export market of both products. The correlation analysis results showed that the total export of coconut products, export of kernel products and coconut oil are the drivers of the export of charcoal. Export amount of activated carbon, domestic consumption, export of fresh nuts, population are the major bottlenecks of the export performance of charcoal. Total export of coconut products, export of coconut oil are the major drivers of exporting activated carbon. Export of charcoal, domestic consumption, export of coconut shell flour and population are the major bottlenecks of the export performance of shell activated carbon. According to the respondents, monopoly condition, high wastage, lack of shell collectors and suppliers, policies, poor government support are bottlenecks of charcoal and while competitor countries, technology gap are bottlenecks of activated carbon. If Sri Lanka enhance drivers and eradicate bottlenecks, both industries can reach international standards in future. Finally, the study revealed that Sri Lanka has a huge potential to develop charcoal and activated carbon industry.