Sri Lanka receives Netherlands, Australian loans to develop dairy industry

Sri Lanka recently received a total of US$20.7 million as loans from Netherlands and Australian financial institutions to develop the dairy industry in the island, official sources said.

Under this, 2,500 high yield milch cows are to be imported for the Ridiyagama farm in the Hambantota district and a new farm complex will be constructed with all latest technologies to house these cattle, a senior official of the National Livestock Develpment Board (NLDB) revealed.

The Cooperatiieve Centrale Raifffeisen-Boerenleenbank (Rabobank) of Netherlands and the Export Finance Insurance Corporation (EFIC) of Australia signed agreements with Dr P.B. Jayasundera, Secretary, Ministry of Finance and Planning to provide the loan.The Government has already imported 2,000 high yield cows to the NLDB farm complex in Bopaththalawa and the infrastructure of the farm complex was developed.

The 2015 budget has proposed to increase the guaranteed price of liquid milk to Rs. 60 per litre to increase local milk production and reduce the price of locally made milk powder by Rs. 100 per kilo and yoghurt by Rs. 3 per yoghurt, to popularize local products. According to budget estimates, a sum of Rs.300 million will be allocated for MILCO as current expenditure as a contribution for this purpose.

Funds have been allocated for the expansion of the production of MILCO by doubling its capacity as well as to import 20,000 high quality cows to promote small and medium dairy farms as well as Government farms.

A special loan scheme is being implemented at a low interest rate, in support of SMEs to promote dairy farms, set up milk collection centres and procure equipment, increase animal feed production, etc.