Place coconut oil into the instant pot and set to saute. When oil is hot, add onion and cook for 2 minute. Add 2 tablespoons curry powder and garlic and continue to heat for an additional 2 minutes.
Stir in drained diced tomatoes, tomato paste, chicken broth and sugar. Mix well. Season chicken with salt, pepper and remaining curry powder and place on top of the mixture in the instant pot.
Place the lid on the instant pot and close. Seal the pressure regulator shut. Set to poultry or the high pressure setting, for 10 minutes.
When cooking is complete, let the pressure naturally release for 10 minutes. Carefully open the pot and remove the chicken. Use a knife to cut the into cubes. Return meat and mix well.
Set the pot to saute and add 1/2 to 1 cup coconut milk to achieve your desired consistency. Once mixture is hot, about 2 minutes, remove and serve with warm rice and top with chopped fresh parsley, if using.