Coconut testa is the brown coloured thin outer covering of the coconut endosperm. Approximately, 18 % (w/w, wet basis) of the coconut kernel is composed of testa. Plenty of brown testa is generated by coconut processing industries throughout the year.  Owing to lack of research and technical studies, it is being either wasted or underutilized by the coconut sector. The current study aims at investigating the potential of the brown testa of Sri Lankan coconut cultivars for value addition. Through value addition, the waste can be converted into wealth by giving additional income for the coconut sector. This may also help reduce the waste disposal problem of the coconut processing industry. In this study, we attempted to dry the wet coconut testa.  After grinding the dried testa, we managed to obtain a brown flour. Analysis of nutritional composition showed that the flour is suitable for diabetic patients who require to eat foods with low-glycemic index. Biochemical studies are in progress to explore the anti-oxidative and anti-diabetic properties of the flour. In addition, we will explore the phyto-chemical constituent present in the coconut in the coconut testa.