Budget Pumps Billions into Dairy, Poultry and Livestock

COLOMBO (News 1st); As Sri Lanka looks for new engines of growth beyond traditional sectors, the government has turned its attention to livestock, unveiling a series of measures aimed at strengthening domestic food production, reducing import dependence and opening new export opportunities.

Presenting the 2027 Budget, President Anura Kumara Dissanayake announced plans to modernise the country's livestock sector through investments in breeding programmes, milk processing, poultry exports and livestock farming support.

A key focus of the plan is the development of specialised breeding farms under the National Livestock Development Board. To support this effort, Rs. 1.8 billion has been allocated to import high-quality breeding stock for dairy cattle and buffaloes at the Nikaweratiya Farm, pigs at the Horakele Farm and sheep at the Siringapatha Farm.

The government is also exploring the creation of a dedicated economic zone centred on the Western and North Western Provinces to support the export of chicken and value-added poultry products, signalling an effort to position Sri Lanka as a more competitive player in regional food markets.

Meanwhile, one of the country's long-delayed industrial projects is set to move forward once again. The new Milco milk processing factory at Badalgama, which has remained incomplete despite millions already being spent on the project, has received another Rs. 3 billion allocation for 2027.

Construction of the facility began in 2015 and was originally expected to be completed in 2019. However, years of delays left the project stalled, giving rise to machinery damage, rehabilitation costs, rising equipment prices and contractor claims. The latest allocation is intended to complete the project and bring the plant into operation.

The Budget also includes fresh support for rural livestock farmers. An additional Rs. 300 million has been allocated, on top of the existing Rs. 200 million, to provide concessions for goat farming projects in districts including Puttalam, Mannar and Batticaloa.