Sri Lanka produces three billion coconuts annually; yet the industry needs at least four billion to utilize processing capacity; to meet export demand and to stay competitive globally. 70% of coconuts are consumed locally; with the balance insufficient to sustain and grow exports. This supply dynamic is identified by the industry as their biggest challenge. IFC have recently approved a project and identified a leading coconut exporter as a partner. The project which is in a pre-implementation phase will support the firm and their supply chain partners (SME’s; smallholders) in enhancing their production to address the challenges faced by the industry.