Abstract:
Milk is inherited by the nature as a much tasted drink as well as high nutritious liquid food. Milk is consumed the every man at least one time in their duration of life. As an agricultural country, the dairy industry of Sri Lanka has survived in thousands of years. Prior to adopt the open economic policies in 1977, Sri Lanka had become self sufficient in milk. After adopting the open economic policies, imported milk products were attracted to consume exceedingly since they had very lower prices. Therefore, the demand for domestic dairy products had fallen and the dairy farmers were discouraged. Then dairy industry in Sri Lanka was subject to recession and it had made many harmful effects to the economy. Hence, this article is focused on understanding the current situation of the dairy industry, identifying the problems and prospects of this sector and adduce the suitable policies and programmes for develop the dairy industry in Sri Lanka.