SRI LANKA - Ministry of Finance and Planning

2.3 Self Reliance in Livestock Industry
Only 15 percent of the
domestic demand for milk is met by
local production. We have to change
this unfortunate situation. Instead of
enriching multinational companies by
granting subsidies on imported milk
powder, every effort will be made
to ensure self sufficiency in milk
production.
livestock produce, provide them to consumers at an
affordable price for improving their nutrition status
and tapping its potential for creation of employment.
Livestock policy encourages the private sector to get
engaged in commercial operations while public sector
investment will gradually be directed to regulatory
activities, research and extension services to the areas
where returns on investment are not attractive to the
private sector but are essential to the development of
industry.
(Mahinda Chintana– 2005, p 51)
Overview
The livestock sector consists mainly of the dairy and
poultry sub-sectors, which are considered as priority
areas for future growth, employment generation and
increasing income of rural farmers. Developing the
livestock sector is also a very cost effective way of
decreasing the under-nutrition among rural families.
The livestock sector accounted for about 1 per cent of
GDP in 2009. About 670,000 smallholders are engaged
in the sector. Between 30-60 percent of their farm
income is generated from livestock activities.
At present, 33 percent of the national milk requirement
is met through local production. The consumption of
milk and other dairy products is expected to increase
over the next few years, with increasing per-capita
income and living standards of people.
The poultry sector has shown the highest growth
during last few years and has developed from
semi-intensive production to intensive systems of
production.
The main policy objectives of the livestock sector are
to achieve a higher level of self - reliance in milk and
Improved breeds, the availability of quality fodder/
pasture and concentrates, better animal health,
proper collection and processing network, research
and extension, are important factors in increasing
production. Therefore, future strategies for increasing
livestock production will concentrate on improvements
in these areas, which will be implemented through both
public and private sectors.
Policy Direction
The dairy sector will be considered as the priority
sector for public investment recognizing its
contribution to the national economic development
process. The Government also recognizes that there
should be no restrictions on the rearing of animals for
meat (goats, swine, rabbits etc) and meat processing by
the private sector.
The private sector needs to assume greater
responsibility in developing the poultry sector. The
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