Australia and the Netherlands are kick-starting Sri Lanka’s depleted dairy industry with a US$12mn loan to develop National Livestock Development Board (NLDB) farms in Bopaththalawa, Nikaweratiya and Siringapatha.

The project will be implemented in two phases. Phase one will total US$12.9mn, of which US$10.5 will be provided by Rabobank and Australia’s Export Finance Insurance Corporation (EFIC) financing. The US$2.4mn balance will be provided by Rabobank.

Additionally, arrangements have been made to increase the milk production of Sri Lanka by importing 4,500 cows from Australia.