Pelwatte Dairy Industries Limited has announced a major investment initiative aimed at strengthening Sri Lanka’s dairy industry and improving access to locally produced nutritional products. Through its fully owned subsidiary, Pelwatte Foods Ltd., the company plans to establish a Greenfield Liquid Milk Manufacturing Facility at its Kurunegala plant with an investment of approximately Rs. 1.86 billion.
The investment was officially formalised through an agreement signed with the Board of Investment (BOI) of Sri Lanka 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 proposed facility, identified as Phase 01 of the company’s expansion strategy, will focus on producing liquid milk and flavoured milk beverages including chocolate, vanilla, strawberry and iced coffee varieties. According to the company, the plant will be equipped with advanced automated technology and modern processing systems designed to maintain international manufacturing standards while ensuring consistent product quality.
Construction work on the facility is expected to begin in July 2026, while commercial operations are scheduled to commence by July 2027.
For decades, Pelwatte has remained a trusted household brand in Sri Lanka’s milk powder market. The company now aims to expand its footprint into the liquid milk sector while providing consumers with more accessible and diverse nutritional choices.
Company officials stated that the investment is expected to contribute significantly towards strengthening local dairy production capacity and reducing the country’s dependence on imported dairy products. The project is also expected to support food security initiatives by increasing the availability of high-quality dairy products produced locally.
Despite the plant’s highly automated operations limiting direct employment opportunities, the project is expected to create indirect economic benefits across the dairy supply chain. Increased demand for locally sourced raw milk is expected to provide support to dairy farmers and related industries.
Pelwatte representatives described the project not merely as a commercial expansion, but as a long-term investment in the health and wellbeing of Sri Lanka’s population. The company emphasised that improving access to nutritious, protein-rich dairy products can play an important role in addressing nutritional challenges affecting mothers and children.
The investment comes at a time when malnutrition continues to remain a serious public health concern in Sri Lanka. Health data indicates that a considerable number of babies are born with low birth weight, while anaemia among women of reproductive age and undernutrition among children continue to pose challenges nationwide.
Experts note that ensuring better maternal nutrition during pregnancy and improving access to quality food sources are essential measures in reducing long-term health risks for both mothers and children.
With construction scheduled to begin in mid-2026, the Kurunegala facility is expected to further strengthen Pelwatte’s position as a leading player in Sri Lanka’s dairy sector while contributing towards national nutrition and food security goals.
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