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Velema Holdings, a Netherland based investment firm, is offering to put together a turnkey dairy facility if about 1,500 hactares of land with fresh water facilities is made available.
Sri Lankan herds generally produce about less than seven litres of milk per day and high yield European breeds do not thrive in Sri Lanka except at high altitudes, leading to low yields, though Australian breeds have been imported recently.
Lack of high quality feed also adds to low yields. State backed 'guaranteed prices' have also made liquid milk expensive, discouraging its use, critics say.
"Sri Lanka wants to improve domestic milk production," Lubartus Velema head of Velema Holdings said.
"We can set up a turnkey dairy farm and processing facility to make dairy products, if 1,500 hactares of land is made available."
Velema was part of a business delegation from the Netherlands who arrived in the country with a television crew from the Dutch business channel, led by Sri Lanka's ambassador Bud