Rinse the jasmine rice in cold water using a fine mesh strainer until the water runs clear.

In a medium saucepan, combine the rinsed rice, coconut milk, water, salt, and sugar. Stir to mix well and let it sit for 10 minutes.

Place the pan over medium-high heat and bring it to a gentle boil. Stir once, then reduce heat to low, cover with a tight-fitting lid, and simmer for 18–20 minutes.

Once the liquid is absorbed, turn off the heat and let the rice rest, covered, for 10 minutes.

Fluff the rice with a fork, garnish with chopped cilantro or parsley, and serve with lime wedges if desired.