Milk market in Sri Lanka

Earlier Report Observations

From 2018 to 2020, Sri Lanka's milk market volume fluctuated, peaking at 618.6 thousand tons in 2020. The modernization of Polonnaruwa, Digana, and Ambewela milk factories in 2019 enhanced milk collection by state-owned Milco, contributing to a rise in domestic production to 521.8 thousand tons in 2020. During this period, the government maintained price controls on imported milk powder to shield consumers, influencing import levels.

In 2021, despite a milk powder shortage driven by rising global prices and freight costs, overall market volume edged up to 627.2 thousand tons as domestic production increased to 545.0 thousand tons. The following year, the imposition of special taxes on milk powder imports cut imports to 50.2 thousand tons, causing the market size to drop to 586.8 thousand tons. By 2023, imports recovered to 67.8 thousand tons, offsetting a slight decline in production and lifting market volume to 601.6 thousand tons; this rebound coincided with Milco's expansion into online sales and growing formal market activity.

Production milk in Sri Lanka

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

In 2020, Sri Lanka produced 521.8 thousand tons of milk, marking a 9.7% increase from the previous year. Looking at the period from 2017 to 2020, production grew by 23%, which translates to an annualized growth rate of 7.1%. The most significant production decline occurred in 2019, with a drop of 4.2%, while the largest increase was recorded in 2018, at 17.0%.

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

Exports milk from Sri Lanka

Exports in kind, t

The market performance showed noticeable fluctuations during this period. Exports reached their lowest point in 2018 at 158 tons and peaked in 2019 at 1 205 tons, representing a 7.6-fold variation between these years. In 2020, Sri Lanka's milk exports totaled 1 009 tons, which is 16.2% lower than in 2019. The largest decline was observed in 2018, with an 82.5% drop, while the most substantial increase occurred in 2019, at 664.7%.

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

From 2017 to 2020, Maldives was the dominant buyer of milk from Sri Lanka, accounting for 84.7% of total exports in volume, with other countries making up the remainder.

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

The data reveals irregular changes, indicating a volatile market environment. Exports hit their lowest point in 2018 at 1.0 million US dollars and peaked in 2020 at 3.0 million US dollars, showing a 3.2-fold gap. In 2020, Sri Lanka exported 3.0 million US dollars worth of milk, representing a 17.5% increase compared to the previous year. The largest decline was recorded in 2018, with a 57.5% drop, while the most significant increase occurred in 2019, at 171.4%.

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

Throughout 2017 to 2020, the key partners in export value terms were Maldives, accounting for 66.8% of exports, Canada at 11.1%, and the United States at 6.2%. Together, these three countries represented 84.1% of total export 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 milk to Sri Lanka

Imports in kind, t

In 2020, Sri Lanka imported 97 742 tons of milk, up by 3.8% compared to the previous year. Between 2017 and 2020, imports increased by 4.3%, equating to an annualized growth rate of 1.4%. The largest decline was recorded in 2019, with a 2.2% decrease.

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

From 2017 to 2020, the geographical pattern of milk imports in volume was characterized by a strong dominance of New Zealand, which held an 89.6% share of total flows, while other partners had relatively minor shares.

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

Cross-border shipments of milk to Sri Lanka increased for the second consecutive year. In 2020, imports stood at 317.0 million US dollars, corresponding to a modest increase of 7.8% compared to 2019. Over the period from 2017 to 2020, imports grew by 7.1%, with a compound annual growth rate of 2.3%. The minimum value was recorded in 2018 at 287.0 million US dollars, and the largest decline occurred in the same year, with a 3.0% drop.

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

From 2017 to 2020, imports of milk to Sri Lanka in value terms were highly concentrated on New Zealand, which accounted for 91.3% of total flows.

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

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