Sri Lankaβs state owned dairy company Milco (Pvt) Ltd has achieved its highest ever profit, recording Rs. 1.49 billion by October 2025, marking a significant turnaround in the companyβs financial performance. The achievement was also accompanied by the highest sales revenue in MILCO – ΰΆΈΰ·ΰΆ½ΰ·ΰΆΰ·βs history.
The improved financial position has enabled the company to settle its outstanding debts and share the benefits of its performance with employees and dairy farmers. On December 31, 2025, all 1,228 employees received a performance bonus of Rs. 75,000 each, while Rs. 180 million in profit-sharing incentives was distributed among approximately 22,000 dairy farmers, marking the first such payment in 21 years.
MILCO – ΰΆΈΰ·ΰΆ½ΰ·ΰΆΰ· had previously accumulated Rs. 3.5 billion in bank loans and Rs. 1.7 billion in outstanding payments owed to milk supplying farmers. These financial obligations have now been fully settled. The companyβs recent turnaround has strengthened its financial stability while also helping to build stronger relationships with local milk producers.
Plans are also underway to restart the long delayed Badalgama milk factory project, which is expected to have the capacity to process up to 200,000 litres of milk per day. In addition, Rs. 1 billion has been allocated to upgrade the NLDB farm in Nikaweratiya and support farmers with high-yield dairy cattle.
MILCO – ΰΆΈΰ·ΰΆ½ΰ·ΰΆΰ·βs turnaround represents a notable development for Sri Lankaβs dairy sector, with the companyβs improved performance creating opportunities to strengthen local milk production and provide greater benefits to the farmers and employees who contribute to the industry.
Source : The Day News Global
