Coconut has declined in its importance as an export crop during the last 10 years, but it is still an important commodity as an industrial raw material and food source in the domestic market. To date a total of 28 coconut products have been manufactured and exported to over 80 countries. In the past Sri Lanka has been exporting mostly traditional coconut products like desiccated coconut, coir fibre, coconut shell charcoal, coconut oil and poonac (copra meal), but in recent years emphasize on product diversification and value addition has resulted in the export of products like coconut milk powder, activated carbon, coir brushes and brooms, mats and matting, coir fibre pith moulded coir products and geotextiles. Besides, there are also focus on new products like coir fibre plywood, coconut leaf based decorative articles, coir fibre mattresses, filters and insulators, coconut alcohol and vinegar. Some of the major programmes on processing carried out through Coconut Development Authority include constant supervision to ensure required working standards, promotion of appropriate modern processing technologies and certification of quality of export consignments of coconut products. The paper concluded by saying that Sri Lanka is making efforts to expand markets to China, South Korea, Eastern Europe, South America and the Middle-East.