Sri Lanka's state-owned dairy company Milco has achieved its highest-ever net profit of Rs.1.49 billion in 2025, enabling it to clear accumulated debts and distribute bonuses to employees and farmers for the first time in over two decades.

Milco (Pvt) Ltd has completed a significant financial recovery, recording a net profit of Rs.1.49 billion by the end of 2025, according to Agriculture and Livestock Deputy Minister Namal Karunaratne. The achievement marks a turning point for the state-owned enterprise, which had previously faced serious financial difficulties and privatization pressures.

The improved financial position has allowed the company to clear substantial accumulated liabilities. Deputy Minister Karunaratne informed Parliament that Milco had carried Rs.3.5 billion in bank loans and Rs.1.7 billion in outstanding payments to milk-supplying farmers, all of which have now been settled. The financial turnaround has also enabled the government to shelve plans to privatize the company.

Milco has distributed the profits among stakeholders. On December 31, 2025, each of the company's 1,228 employees received a performance bonus of Rs.75,000. Additionally, Rs.180 million in profit-sharing incentives was allocated among 22,000 dairy farmers, representing the first such payment in 21 years.

Building on this recovery, the government has announced several expansion initiatives. The long-stalled Badalgama milk factory project will resume operations, with the facility designed to process up to 200,000 liters of milk daily. Meanwhile, an additional Rs.1 billion budget has been allocated to upgrade the National Livestock Development Board's Nikaweratiya farm, which will supply high-yield dairy heifers and breeding stock to local farmers.