About 30,000 metric tonnes of bakery shortenings are currently imported from Malaysia and Indonesia, with all local production being exported to India under a free trade deal.
The Vanaspati Manufacturers Association of Sri Lanka has now sought cabinet approval to sell part of their goods locally.
"We have asked for permission to produce and sell 30,000 metric tonnes of only bakery shortenings and fats, not vanaspati, locally," Sena Suriyapperuma, General Manager of oil manufacturer Pyramid Lanka, told LBO on Monday.
The industry is limiting its request to bakery shortenings as sales of vanaspati could run up against the domestic coconut oil industry.
Suriyapperuma also says that local manufacturers are looking at the possibility of exports of vanaspati to markets outside of India, like Bangladesh, Maldives