Sri Lankan Government to call tenders for Nikaweratiya cattle facility
The Morning: The Government is preparing to call for tenders for the establishment of a cattle breeding facility at the Nikaweratiya Farm before the end of the year.
Speaking to The Morning Business, Deputy Minister of Agriculture and Livestock Namal Karunaratne disclosed plans to establish a cattle breeding facility at the Nikaweratiya Farm, which is managed by the National Livestock Development Board (NLDB).
He said that Rs. 1,000 million had been allocated under the 2026 Budget for the purpose of building the cattle breeding facility, adding that additional funds amounting to Rs. 907 million had also been allocated for this purpose.
“The priority in constructing the breeding facility is to ensure that farmers and the country have access to high-quality calves,” he said.
Karunaratne added that the necessary funds had been allocated and that all preparatory work to call for tenders for the construction of the breeding facility was drawing to a close. He said the ministry expected to be able to commence the tender process before the end of the year.
In his 2026 Budget speech, delivered in his capacity as Minister of Finance, President Anura Kumara Dissanayake highlighted the fact that domestic milk production at present was sufficient to meet only about 40% of the country’s milk requirements, and that a significant amount of foreign exchange was spent annually on importing milk and milk-related products.
He noted that approximately 1,200 million litres of milk had to be produced annually in order to become self-sufficient in milk, announcing that the National Dairy Production Programme was designed to reach the target of meeting 75% of the domestic milk requirement by 2030.
“Increasing the number of high-quality breeding animals in the livestock sector has been identified as a fundamental need to increase local animal production, and this is particularly prominent in the dairy cattle and piggery sectors.
“Therefore, priority will be given in this Budget to improve the breeding units of several high-quality dairy cows and pig breeds and to cultivate nutritious grasses in several selected farms belonging to the NLDB through a methodology selected after a proper study. We propose to allocate Rs. 1,000 million for this purpose,” the President stated.
OSL take:
Sri Lanka’s drive to increase domestic fresh milk production is creating growing business/investment opportunities for foreign businesses and investors across the dairy value chain, as the country seeks to reduce its reliance on imported milk and dairy products. The planned Rs. 1.9 billion investment in a cattle breeding facility at the Nikaweratiya Farm is part of a wider effort to improve the availability of high-quality calves and strengthen domestic dairy production. The Sri Lankan Government aims to meet 75% of the country’s milk requirement through local production by 2030. The expansion creates potential opportunities in cattle breeding, dairy farming, animal genetics, feed production, veterinary services, milking technology, cold-chain infrastructure and dairy processing. International companies could also partner with local farmers and businesses to introduce modern technologies and improve productivity. Beyond fresh milk, the sector offers scope for investment in value-added products such as yoghurt, cheese, butter and other processed dairy products, as well as packaging, distribution and export-oriented production. With Sri Lanka seeking greater dairy self-sufficiency, the emerging business/investment opportunities extend from the farm to the processing plant, making the dairy industry an increasingly significant area for foreign capital, technology and expertise.
| Article Code : | VBS/AT/20261002Z_2 |