Sri Lanka’s dairy sector embraces tech to weather future climate shocks

Following the devastation of Cyclone Ditwah, Sri Lanka’s dairy sector is accelerating its transition toward climate-smart agriculture and advanced technology to build long-term operational resilience.

The natural disaster exposed major vulnerabilities in the country's agricultural supply chain, with the Lanka Milk Foods (CWE) PLC 2025/26 Annual Report noting over US$ 3.4 billion in total damages and economic losses across the island.

Group CEO Sasanka Perera highlighted that the cyclone severely disrupted infrastructure and agriculture, while a depreciating Sri Lankan Rupee further drove up the costs of imported packaging, fuel, and utilities.

In response, Lanka Milk Foods, the company behind major brands like Lakspray, Ambewela, Daily, MyJuicee, and the new Suddhi fresh milk, is modernizing its infrastructure to secure the national milk supply against frequent extreme weather.

The group is investing heavily in medium-scale production units and precision dairy technologies, such as computerized herd-management systems that track animal activity, milk yield, and health indicators.

This automation allows for precise, non-intrusive livestock management and quicker operational decisions.

Despite these challenges, the group's overall profit climbed to Rs. 2,621 million.

While Lanka Milk Foods avoided major physical asset write-offs, it established emergency support structures, including targeted financial aid and expanded distress loans for affected staff.

The company also faced separate financial strains at the subsidiary level, with Ambewela Livestock Company Limited and Pattipola Livestock Company Limited posting net losses of Rs. 204 million and Rs. 67 million, respectively, due to inflation-linked lease hikes.

To mitigate these overlapping climatic and financial pressures, the company is adopting heat-tolerant herd management, water-efficient infrastructure, and localized fodder and silage production.

By producing 20 to 22 percent of its herd's feed internally, the group is shielding itself from volatile import costs and supply chain disruptions.

Backing this strategy with Rs. 1,194 million in capital expenditure, Lanka Milk Foods upgraded its physical facilities, automated systems, and chilling units, successfully eliminating milk spoilage at the modernized sites.

As Chairman C.R. Jansz emphasized, these technological advancements and resource efficiencies are setting higher industry benchmarks to secure a resilient future for Sri Lanka's dairy sector.