An eco-friendly wood preservative developed by the Industrial Technology Institute (ITI), using cashew nut shell liquid, was launched recently at the ITI. The novel formula that represents the third generation of wood preservatives is entirely organic and easy to prepare. This wood preservative was found to be effective against termites, micro-organisms responsible for wood rot, and fungi which cause decay, when evaluated on wood samples treated with this solution. This novel wood preservative could be prepared at a relatively low cost using a simple process. It is formulated using several relatively non-toxic compounds and hence it could be recommended as an eco-friendly wood preservative. This wood preservative prevents the attack of termites and wood rot by exerting a repelling action upon them. It inhibits the growth of fungi on wood and prevents its attack. It was expected that the Sri Lanka Cashew Corporation (SLCC) would take steps to commercialize this product which has been produced on a pilot scale. This would be done through a separate agreement, which would include the use of intellectual property rights, jointly owned by the ITI and the SLCC. The ITI has also initiated research to develop other value added products from cashew nut shell oil and from the residue after extraction of the liquid from cashew shells. One of these is a cost effective sealant that could replace the existing sealant used for rain guards on rubber trees. Minister of Science and Technology, Prof. Tissa Vitarana, lamenting over brain drain on Sri Lankans, requested the remaining scientists to stay on in their motherland and continue more diverse research for the innovation of more products to help the country go forward and grow.