A Rs. 2 billion investment is set to boost local milk production as the country currently produces only 43% of its daily milk requirement, according to Deputy Minister of Agriculture and Livestock Namal Karunaratne.
Speaking in Parliament on Friday (24), Karunaratne said the Government has allocated Rs. 1 billion under this year’s Budget to increase annual milk production from 410 million litres to 1.2 billion litres.
Another Rs. 1 billion has been allocated to upgrade the Nikaweratiya Breeding Farm, with plans to transform it into a nucleus breeding centre for high-quality dairy cattle and buffalo.
Expanding Domestic Milk Production
Karunaratne said the investment forms part of a broader effort to strengthen the local dairy sector and reduce dependence on imported milk by increasing domestic production.
The Government is also implementing several initiatives to improve the industry’s productivity, including modernising livestock breeding farms, expanding the National Milk Production Programme and providing facilities to support local dairy farmers.
Focus on Long-Term Dairy Growth
The planned investments are expected to strengthen breeding capacity, improve the quality of dairy livestock and increase milk production over the long term, while supporting the development of a more self-sufficient dairy industry.
With local production currently meeting less than half of daily demand, the Government’s latest investment aims to accelerate growth in the dairy sector and improve the country’s milk supply.
Investment Ministerial Update Parliamentary Updates
Last modified: July 24, 2026
