The product, 'Enfakid', developed by US food giant Mead Johnson is formulated for toddlers between 3 to 10 years, the company said.
Baur Healthcare, which commands over 20 percent of the infant formula market in Sri Lanka, says the product will be priced higher than other infant formulas available in the local market.
The milk powder contains Docosahexaenoic acid (DHA), which most commonly is found in fish oil, that helps reduce risk of heart disease, the company says.
It also contains Arachidonic acid (ARA) both of which are polyunsaturated fatty acids.
Some studies in infants suggest that these fatty acids in infant formulas may have positive effects on visual function and neural development over the short term but other studies do not confirm these benefits, international paediatric websites say.
Baur was founded in 1897 as a fertilizer business and later expanded into pharmaceuticals