Traditional coconut oil processing from copra using kiln drying method is considered the most suitable method for Sri Lanka in terms of economic aspects. However, mold development and Polycyclic Aromatic Hydrocarbons (PAH) accumulation could occur if good practices are not followed. With the conundrum of some imported coconut oil consignments to Sri Lanka in early 2021, the authenticity of locally produced copra-based coconut oil was also questioned. A mixed-mode survey was conducted for 65 processors in the Kurunegala District to investigate the extent of following recommendations by processors on raw material handling and process control, with reference to good manufacturing practices (GMP). The study revealed that kiln drying and storage were not according to recommendations, bringing out the possibility of developing mold and production of aflatoxins in prolonged storage. Household-level processors were significantly (P<0.05) following good practices to avoid contamination coming from moldy copra in comparison to commercial-level processors. In addition, processors who target local and export markets followed recommendations on process control compared to processors who target only local market. An effective third-party regulatory process to authorize and improve the processing practices to ensure the quality and safety of coconut oil is identified as an utmost requirement.