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Pelwatte goes for Rs. 1.86 b investment in greenfield liquid milk manufacturing facility

Pelwatte Dairy Chairman Ariyaseela Wickramanayake (third from left) with BOI Chairman Dr. Sulakshana Jayawardena. Other representatives of Pelwatte Dairy (from left): Project Manager Lakshman Perera, Managing Director Akmal Wickramanayake, Project Accountant Amila Keerthirathna and Assistant General, Manager – Legal and Compliance Madusha Soundararaj

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 expecting 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.

Health data indicates that nearly one in six babies in Sri Lanka is born with low birth weight, a condition linked to long-term health and developmental challenges [unicef.org], national estimates suggest 15.9%–18% of infants are underweight at birth [globalnutr...report.org], [data.worldbank.org], around 34.6% of women of reproductive age suffer from anaemia, a key contributor to poor maternal and neonatal outcomes [globalnutr...report.org] and around 17% of children under five are stunted, while over 15% experience wasting, indicating persistent gaps in nutrition [globalnutr...report.org].

Experts note that improving maternal nutrition during pregnancy and ensuring access to high-quality, protein-rich food sources are essential steps in reducing these risks.