Sri Lanka, Jan. 26 -- Sri Lanka has blocked several multinational companies from setting up industries using coconut husks to protect smaller local businesses, Plantation and Community Infrastructure Minister K.V. Samantha Vidyaratna said in parliament.

The move came after complaints that foreign companies were paying higher prices to coconut farmers, which local industries-using simpler, less efficient methods-could not match. "With the entry of large factories, there is competition," the minister said, adding that some foreign investors were not approved to protect smaller local businesses.

The demand for coconut husks has grown globally as they are used for moisture retention and as a growth medium.

Sri Lanka produces around 2.7 bi...