Pelwatte Dairy Invests Rs. 3.1 Billion to Strengthen Sri Lanka’s Dairy Industry with New Processing Facility

Pelwatte Dairy Industries Ltd, Sri Lanka’s largest milk collector and a key player in the dairy sector, is making strides to further solidify its industry leadership. The company plays a pivotal role in strengthening Sri Lanka’s self-sufficiency in dairy production. As a dominant force in the market, Pelwatte Dairy Industries further supported by ongoing investments in production infrastructure and product innovation, reinforcing its commitment to delivering high-quality dairy products to Sri Lankan consumers.

Building on this momentum, the company is set to introduce a diverse range of new SKUs, catering to evolving consumer demands. This expansion will be driven by a Rs. 3.1 billion investment in a state-of-the-art Greenfield dairy processing facility in Ibbagamuwa at Kurunegala district.

The new factory is being developed as a environmentally sustainable project with featuring modern infrastructure that integrates the latest advancements in dairy processing technology. The facility will include both fully and semi-automated processing lines, ensuring consistency, efficiency, and higher quality with hygiene standards. With automation reducing manual intervention, production efficiency is expected to improve significantly, enhancing both output and product quality. A dedicated comprehensive quality assurance and testing system will be in place, incorporating advanced monitoring and control mechanisms to maintain the highest standards of food safety and hygiene.

As part of Pelwatte Dairy Industries commitment to sustainability, the factory is being designed with energy efficiency and environmental responsibility in mind. The facility will implement water recycling systems, waste management solutions, and energy-efficient processing technology, ensuring a reduced environmental footprint. It will be fully sustainable, incorporating solar power systems and designed to meet green building certification standards, driving towards a zero-carbon footprint aspiration and aligning with global ESG benchmarks. The plant will also be focused on the export aspirations of its products and fully aligned with global dairy standards, ensuring compliance with any overseas audit or evaluation. The cold chain and storage systems are also being optimized to enhance product freshness, extend shelf life, and streamline logistics, reinforcing the company's ability to meet growing consumer demand while maintaining high quality standards.

The factory will be integrated as “SMART” factory with digital monitoring systems, allowing for real-time production tracking, predictive maintenance, and enhanced decision-making capabilities. These digital integrations will play a key role in improving operational efficiency and ensuring seamless production processes. Additionally, the plant has been designed with worker safety and ergonomics in mind, incorporating improved workspace layouts, safety-first protocols, and automation-driven handling systems to reduce manual labor requirements.

In the new facility will enable the production of an expanded range of Flavored milk, Ready to Drink (RTD) beverages, condescend milk, Milk Blends, Cheese, Liquid milk, RTD- Fruit juices, strengthening the company’s market presence and enhancing its ability to meet both domestic and export demand. The plant will also be fully compliant with international food safety standards, ensuring that all products align with both local regulatory requirements and global benchmarks.

At initial capacity, the new plant will process 50,000 to 80,000 liters of milk daily, sourced directly from farmers across the Northwestern Province and fully capacity will be set at 300,000 litres. This expansion is expected to strengthen local procurement networks, providing greater income stability for dairy farmers and allowing them to scale production in line with growing market demand. Beyond its direct impact on dairy supply, the facility is projected to create over 100 direct jobs and 200 indirect employment opportunities, further contributing to regional economic development. The factory is scheduled for completion by June 2026, positioning Pelwatte Dairy Industries at the forefront of Sri Lanka’s dairy industry.

Akmal Wickramanayake, Managing Director of Pelwatte Dairy Industries, stated: "Sri Lanka’s dairy sector has long depended on external supply chains, but we believe the future lies in strengthening local production. This investment is about more than just capacity—it’s about ensuring that our farmers have the stability to grow, that consumers can rely on locally sourced dairy, and that the industry can become a key pillar of the country’s economy. The Kurunegala facility is a crucial part of that vision, bringing together technology, expertise, and sustainable practices to drive long-term growth."

Since its establishment in 2006, Pelwatte Dairy Industries has remained committed to enhancing food security, reducing import dependency, and driving sustainability within Sri Lanka’s dairy industry. The company’s latest investment reaffirms its vision to lead the sector’s growth, ensuring that locally produced dairy continues to serve as a cornerstone of the country’s food economy.