Concentrated or sweetened milk and cream market in Sri Lanka

Earlier Report Observations

The market for concentrated or sweetened milk and cream in Sri Lanka showed considerable volatility between 2018 and 2023. After peaking at nearly 139 000 t in 2020, total market volume fell sharply to 91 131 t in 2022. This significant contraction was primarily driven by a steep decline in imports, which more than halved from 2021 levels. The introduction of a 2.5% para-tariff on these products in 2022 raised import duties, making foreign supplies more expensive and reducing import volumes substantially. The market partially recovered to 108 000 t in 2023 as imports began to rise again.

Domestic production remained relatively stable throughout the period, fluctuating between 38 000 t and 44 000 t annually. The new Food Labeling and Advertising Regulations, which came into force at the start of 2024, updated packaging requirements for the sector. This regulatory change coincided with a year-on-year decrease in import volumes for 2024, suggesting it may have introduced new compliance considerations for market participants.

Production concentrated or sweetened milk and cream in Sri Lanka

In kind, 2017-2020, t

Top producers of concentrated or sweetened milk and cream, 2017-2020

World map of production of concentrated or sweetened milk and cream, 2017-2020

In 2020, Sri Lanka produced 42 268 tonnes of concentrated or sweetened milk and cream, representing a year-over-year increase of 10.9%. Over the 2017-2020 period, production grew by 27.1%, with an average annual growth rate of 8.3%. The largest decline occurred in 2019 at 8.0%, while the most significant increase was recorded in 2018 at 24.5%.

Annual dynamics of production in Sri Lanka in kind, 2017-2020, t

Exports concentrated or sweetened milk and cream from Sri Lanka

Exports in kind, t

The data shows irregular changes, indicating a volatile market environment. Exports reached their lowest point in 2018 at 131 tonnes and peaked in 2019 at 1 200 tonnes, representing a 9.1-fold difference between these years. In 2020, Sri Lanka exported 995 tonnes of concentrated or sweetened milk and cream, marking a substantial year-over-year decline of 17.1%. The largest decline was recorded in 2018 at 85.3%, while the most significant increase occurred in 2019 at 814.8%.

Annual dynamics of product's exports from Sri Lanka in kind, 2017-2020, t

From 2017 to 2020, Maldives was the primary destination for exports in kind, accounting for 84.7% of total flows, with other markets forming a long tail of smaller partners.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Sri Lanka in kind, 2017-2020

Exports in value, M $ US

Market performance showed noticeable fluctuations during this period. Export values reached their lowest point in 2018 at 0.9 million US dollars and peaked in 2020 at 3.0 million US dollars, representing a 3.3-fold difference. In 2020, Sri Lanka's concentrated or sweetened milk and cream export value amounted to 3.0 million US dollars, marking a 17.1% increase compared to 2019. The largest decline was recorded in 2018 at 59.3%, while the most significant increase occurred in 2019 at 185.5%.

Annual dynamics of product's exports from Sri Lanka in value, 2017-2020, M $ US

During 2017-2020, the main markets for exports in value terms were Maldives (66.7% of exports), Canada (11.3%), and the United States (6.3%), together accounting for 84.3% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Sri Lanka in value, 2017-2020

Imports concentrated or sweetened milk and cream to Sri Lanka

Imports in kind, t

In 2020, Sri Lanka's volume of concentrated or sweetened milk and cream imports stood at 97 430 tonnes, up 3.9% compared to the previous year. Between 2017 and 2020, imports increased by 4.5%, equating to an annualized growth rate of 1.5%. The largest decline was recorded in 2019 at 2.1%.

Annual dynamics of product's imports to Sri Lanka in kind, 2017-2020, t

Throughout 2017-2020, New Zealand remained the main source for imports in kind, accounting for 89.7% of total flows, with the remaining share distributed across various smaller markets.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Sri Lanka in kind, 2017-2020

Imports in value, M $ US

Sri Lanka's concentrated or sweetened milk and cream imports increased for the second consecutive year. In 2020, imports amounted to 316.3 million US dollars, representing a measured year-over-year uptick of 8.0%. Over the 2017-2020 period, imports grew by 7.5%, with an average annual growth rate of 2.4%. The minimum value was recorded in 2018 at 285.8 million US dollars, while the largest decline occurred that same year at 2.9%.

Annual dynamics of product's imports to Sri Lanka in value, 2017-2020, M $ US

From 2017 to 2020, concentrated or sweetened milk and cream imports to Sri Lanka were supplied almost exclusively by New Zealand, which accounted for 91.4% of total imports in value terms.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Sri Lanka in value, 2017-2020