Watawala Plantations PLC, a member of the diversified Sunshine Holdings conglomerate and one of Sri Lanka’s largest Regional Plantation Companies (RPCs), has announced plans to set up a mega commercial dairy operation, with a total initial funding commitment of USD 11.5 million.
Of this funding, a majority (of USD 4.3 million) has been committed by Watawala Plantations PLC while a USD 3 million share represents Foreign Direct Investment (FDI) by Duxton Asset Management, a leading Singapore-based international and boutique asset manager. This is the first-ever agricultural FDI in Sri Lanka by Duxton Asset Management, which manages and advises assets of approximately USD 690 million, of which USD 460 million are in agricultural investments. With the new investments, once it is in full operation, Watawala Dairy will expand its herd to 1,000 dairy cattle and is forecast to generate over Rs. 1 billion in revenue from the fourth year of operation. The present small-scale dairy farm operated by Watawala Plantations – consisting of 75 dairy cattle and generating annual sales of Rs. 30 million – has been brought under
Watawala Dairy Ltd.