Desiccated coconut (DC) industry is one of the economically important and major export oriented food processing industries in Sri Lanka. This paper discusses various cleaner production (CP) options available in the DC industry to reduce cost of production and to mitigate negative environmental effects of the manufacturing process. Majority of the CP options discussed in this paper are simple measures that can easily be implemented. More importantly, these measures derive substantial benefits to the industry. In one of the mills, the contribution of CP measures towards the reduction of cost of production is around 18%. CP measures therefore can contribute in making the DC industry continually competitive in the global market.