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Australian cows to prop up Sri Lanka rupee, increase incomes

Sept 13, 2011 (LBO) - Sri Lanka's state-run cattle farms are getting cows from Australia to become 'self sufficient' in milk and reduce "the drain on the country™s foreign exchange resources", the finance ministry said. A 12.9 million US dollar project co-financed by Australia's Export Finance Insurance Corporation (EFIC) Cooperative and Centrale Raiffeisen-Boerenleenbank (Rabobank) of Netherlands will see 2,000 cows being imported to state-run farms.
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In the first phase 2,000 animals would be imported to the Bopaththalawa farm of the state-run National Livestock Development Board.

Based on the success of the project another 2,500 cows will be imported to farms in Nikaweratiya and Siringapatha.
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The strategy of the current administration is to promote the dairy industry by improving breeds, feed, health, research, extension services and a processing network. The aim was to reduce a "drain on the country™s foreign exchange resources", increase employment and incomes, the finance ministry said.

Sri Lanka has run into frequent 'balance of payments crises' since the creation of a soft-pegged central bank in 1951 which targets interest rates and exchange rate simultaneously.

Many post-independence e

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