Around 95% of the cultivation in Sri Lanka is owned mainly by the private sector and they operate under the regulations of the Sri Lankan government. This is because coconut is considered as a major food ingredient in Sri Lankan diets. It is also a major plantation crop that contributes to foreign exchange earnings. Therefore, it is necessary that the country adopts quarantine regulations and land use regulations to assure food security, employment and the earnings of the people.

The Coconut Development Act provides information on the distribution of coconut land and land use policy, coconut land management and subsidy policy, coconut plant quarantine policy, coconut pricing policy, and the market mechanism which governs the policies which are relevant to the coconut.

According to the Plant Protection Ordinance No. 165/2, November 1981, no plant shall be imported into Sri Lanka, except under the authority and in accordance with the conditions of a Plant Importation Permits issued by the Director General, Department of Agriculture.