Pelwatte goes for Rs. 1.86 billion investment in greenfield liquid milk manufacturing facility
Daily FT: Pelwatte Dairy Industries Limited has announced a significant new investment through its fully owned subsidiary, Pelwatte Foods Ltd., to establish a Greenfield Liquid Milk Manufacturing Facility (Phase 01) at its Kurunegala plant.
The investment, valued at around Rs. 1.86 billion, was formalised through an agreement signed with the Board of Investment of Sri Lanka (BOI) on 21 May. The signing ceremony was attended by Pelwatte Dairy Chairman Ariyaseela Wickremanayake, Managing Director Akmal Wickramanayake and BOI Chairman Dr. Sulakshana Jayawardena.
The new facility will focus on the production of liquid milk and flavoured milk beverages, including chocolate, vanilla, strawberry, and iced coffee variants. Designed as a highly automated plant equipped with modern processing technology, the project aims to deliver consistent quality while aligning with global manufacturing standards.
Construction is scheduled to commence in July 2026, with commercial operations expected by July 2027.
For decades, Pelwatte has been recognised as a trusted household name in full cream milk powder across Sri Lanka. The company now aims to extend this legacy into the liquid milk segment – providing more accessible and diverse nutritional options to consumers.
The new investment is expected to contribute towards strengthening local dairy production capacity, reducing dependency on imported dairy products, supporting nutritional needs of expectant mothers and growing children and enhancing food security through locally produced, high-quality dairy products.
Despite the advanced automation limiting direct employment generation, the project is expected to create indirect value across the dairy supply chain, including improved demand for locally sourced raw milk.
Speaking at the signing, company representatives highlighted that the initiative is not only a commercial expansion but also a long-term investment in the health and wellbeing of the nation.
By leveraging modern processing technologies and expanding into value-added dairy products, Pelwatte aims to play a more active role in addressing Sri Lanka’s evolving nutritional challenges, particularly those affecting early childhood development and maternal health.
With construction set to begin in mid-2026, the Kurunegala facility is expected to strengthen Pelwatte’s position as a leading player in Sri Lanka’s dairy industry while supporting national efforts to combat malnutrition and improve overall nutrition outcomes.
Pelwatte’s investment comes at a time when malnutrition continues to be a pressing public health issue in Sri Lanka, particularly affecting vulnerable populations such as pregnant mothers and young children.
OSL take:
Sri Lanka’s drive towards achieving self-sufficiency in dairy milk production is creating significant business/investment opportunities for foreign businesses/investors across the agriculture and food processing sectors. Investments such as Pelwatte Dairy Industries’ new Greenfield Liquid Milk Manufacturing Facility in Kurunegala demonstrate the growing momentum and long-term potential within the country’s dairy industry. As demand for locally produced dairy products continues to rise, business/investment opportunities are emerging in dairy farming, milk processing, cold chain logistics, animal nutrition, farm technology, packaging, and value-added dairy products. Foreign businesses/investors can also benefit from partnerships in modernising production systems, introducing advanced agricultural technologies, and expanding large-scale commercial dairy operations. Sri Lanka’s strategic focus on reducing dairy imports while strengthening domestic production offers a favourable environment for international investment and technology transfer. Supported by government initiatives and investment facilitation through the BOI, the sector presents strong potential for sustainable growth, import substitution, and long-term returns for foreign businesses seeking opportunities in South Asia’s expanding food and agriculture market.
| Article Code : | VBS/AT/20260604Z_3 |