Business
Kotmale generated over Rs. 5.2bn direct income for dairy farmers in 2020
Company’s value added dairy products successfully competing with international brands
Fresh milk sourcing alone saved over USD 28mn in foreign exchange for SL in 2020
Kotmale has become one of Sri Lanka’s national dairy brands contributing to the nourishment of the country and strengthening the local dairy farming community. As a fully owned subsidiary of leading food company Cargills (Ceylon) PLC, Kotmale is a 100% Sri Lankan company. By sourcing fresh milk from over 17,000 local dairy farmers, Kotmale generated over Rs. 5.2bn of direct income for the Sri Lankan dairy farming community in 2020. Today, Kotmale has established itself as Sri Lanka’s largest private sector collector of fresh milk, collecting 180,000 liters on a daily basis.
Sri Lanka imports about 60% of its milk requirement. That amounts to about USD 320 Mn (or LKR 64bn) of foreign exchange leaving the country every year. Though Sri Lanka has always had a milk deficit (local supply is less than local demand), regional peers like India are self-sufficient in dairy. Low milk production in Sri Lanka stems from two issues: 1) low and declining number of milking cows, and 2) low yield per cow compared to global levels which has led to decreasing profitability for farmers.
Sri Lanka’s milking cow population has fallen quite drastically in recent times. From 596,000 in 2015 to 444,000 in 2019, the milking cow population has dropped 25% within a span of four years. This is an alarming statistic that needs immediate addressing from all stakeholders involved. Secondly, Sri Lanka’s milk production per cow remains low at around 3 liters per day, whereas the average global yield is around 7 liters per day and the yield in neighboring India is 8 liters per day. Low yield and low profitability have forced many farmers away from dairy farming which has further weakened local milk production.
Over the years, Cargills has made significant investments to improve dairy production and support the smallholder dairy farming community in Sri Lanka. Cargills has provided both technical and financial support to dairy farmers to enhance capacity while providing a guaranteed marketplace. Cargills also ensured uninterrupted collection of milk during the COVID19 lockdowns. In addition to guaranteeing the best price for the farmer’s milk, Cargills contributes 50 cents for every liter of milk collected into a fund. This money is not reduced from the price paid to the farmer but is a direct contribution from Cargills, as a thank you for the dedicated service of our farmers to the country. These funds are used to provide educational scholarships to children of dairy farmers and support community development projects.
Kotmale products offer nutrition for the family with the largest portfolio of dairy products in Sri Lanka.
The Cargills philosophy of sourcing from local smallholder farmers and manufacturing value added dairy products that compete with international brands has proven to be a great success. It provides affordable nutrition for the consumer while increasing incomes for the Sri Lankan dairy farming community. The Company’s fresh milk sourcing alone saved over USD 28 Mn in foreign exchange for the country in 2020, while directing this income towards Sri Lankan farmers. As a food company focused on providing affordable nutrition, Cargills will continue to invest in uplifting local dairy farmers while bringing the best quality products to local consumers.
Business
ADB-funded Thalaiyadi plant serves as blueprint for vulnerable dry zones in Sri Lanka
Sri Lanka should adopt a diversified water-security strategy, says chief engineer
By Sanath Nanayakkare
For generations, the Jaffna Peninsula has relied almost entirely on an underground freshwater lens. With no major perennial rivers to lean on, the region has long walked a tightrope between water scarcity, seasonal droughts, and a creeping groundwater salinity that has challenged communities across the North. Today, however, a monumental shift is underway along the windswept Vadamaradchi coast.
To understand how Sri Lanka is rewriting its water security playbook, one need only look to the Thalaiyadi Seawater Reverse Osmosis (SWRO) Plant.
V. Vijayakanth, Chief Engineer of the Jaffna Kilinochchi Water Supply and Sanitation Project (JKWSSP), recently explained the engineering marvels, environmental safeguards, and long-term vision driving this landmark infrastructure project.
“Building a multi-million-gallon desalination plant on an open, deep-sea coastline facing the Indian Ocean was no small feat,” he said.
Vijayakanth noted that the project required extensive marine, geotechnical, and ecological investigations before a single pipe was laid.
“The scale of the marine installation was striking: an intake and outfall system featuring roughly 1,300 metres of large-diameter pipeline, buried two metres beneath the seabed in water depths reaching up to 12 metres. Because ocean work is strictly dictated by nature, the team had to mobilise an excavator-mounted barge from India and execute a complex offshore operation within a very tight window before the onset of the monsoon.”
“One of the greatest historical hurdles of reverse osmosis technology has been its heavy appetite for electricity. To keep operational costs in check, the Thalaiyady plant integrates state-of-the-art isobaric pressure-exchanger energy recovery systems. These devices capture hydraulic energy from the high-pressure brine reject stream and transfer it directly back to the incoming seawater feed – recovering roughly 95% of available energy and slashing power requirements.”
“Environmental stewardship was equally central to the design. To prevent high-salinity discharge from harming the marine ecosystem, the plant utilizes an offshore outfall equipped with specialized diffusers positioned more than 500 metres from the shore. This ensures rapid mixing within a tightly monitored zone, safeguarding local marine life,” he said.
The impact of the plant is already tangible on the ground. Producing water that meets rigorous national quality standards (SLS 614:2013), the facility feeds into a vast transmission network linked to elevated service reservoirs. These tanks regulate hydraulic pressure across sprawling distribution routes, bringing relief to areas historically plagued by hard, brackish water.
Currently, about 1,600 households in the Karaveddi Zone are actively connected to the desalinated supply, with water flowing across a regional network stretching from Kodikamam and Jaffna City down to distant island communities like Delft, Kayts and Punguduthivu.
The peninsula’s total daily drinking water demand hovers around 50,000 cubic metres for a population of roughly 600,000. Operating at full capacity, the Thalaiyadi plant yields 24,000 cubic metres per day – meeting nearly half of the region’s current needs.
Yet, planners are already looking decades ahead. Driven by economic development, tourism, and proposed industrial zones like Kankesanthurai, projected potable water requirements for domestic, commercial, and industrial needs are expected to climb from 95,000 cubic metres per day in 2025 to 135,000 by 2045, and 175,000 by 2065. Meeting this future trajectory will require a diversified national strategy combining desalination with surface-water preservation and rainwater harvesting.
When asked whether Sri Lanka should lean exclusively on seawater conversion amid intensifying climate volatility, Vijayakanth emphasised the need for a balanced approach: “Sri Lanka should adopt a diversified water-security strategy, prioritising sustainable surface-water development, groundwater protection, rainwater harvesting, water conservation, treated wastewater reuse and catchment protection. Desalination can complement these sources as a valuable climate-resilient and drought-proof option where appropriate.”
Backed by financial and technical collaboration from the Asian Development Bank (ADB), the project has given the National Water Supply and Drainage Board (NWSDB) invaluable expertise in advanced desalination management. Crucially, a two-year hands-on training program is ensuring that local technical staff master everything from membrane upkeep to preventive maintenance.
As climate variability accelerates, Thalaiyadi serves as a vital proof-of-concept. While energy-intensive desalination cannot replace conventional freshwater sources everywhere, Vijayakanth emphasises that it stands as an indispensable, drought-proof shield for Sri Lanka’s vulnerable dry zones – turning the ocean itself into a secure foundation for the nation’s future.
Business
Tropic Of Linen takes new form at The Shoppes at City of Dreams
Sri Lankan fashion label Tropic Of Linen recently opened the doors to its second boutique, located at The Shoppes at City of Dreams.
For over a decade, linen has formed the core of the brand’s inspiration and business ethos. Its textures, movement, and natural irregularities carry through the striking interior of Tropic Of Linen’s newly opened second store. Large sculptural forms in wind-worn sandstone sit against softer curves, while a grand olive tree anchors the heart of the store, reaching up toward a skylight and giving life to the entire space.
Drawing on her background in fine art and design, co-founder Minha Akram envisioned a layered, sensory interior intended to draw people into the world of Tropic Of Linen and invite them to linger.
Business
ANC Education celebrates ‘Class of 2026’ at graduation ceremony in Colombo
ANC Education held its 2026 graduation ceremony at BMICH, Colombo, celebrating graduates across multiple programmes. The cohort included 53 BBA graduates from Northwood University, 22 Psychological Sciences graduates from Northern Arizona University, 320 Pearson BTEC HND graduates, and 29 BTEC Level 7 graduates, alongside foundation, diploma, and transfer pathway students. Senior representatives from partner institutions attended.
Best Performer Awards recognised outstanding academic achievement. The event honoured years of hard work and support from families and educators. Since 2002, ANC has provided local and international pathways. Graduates now pursue careers, further studies, or international opportunities.
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