Over 80 per cent of Sri Lanka's demand for Milk is met by imports, basically in the form of Full Cream Milk Powder; in other words, Sri Lanka currently produces only 20 per cent of the nation's total milk requirement. Moreover, imports are predominantly in the powdered form, which invariably means that the nutritional value is lower than that of fresh milk.

Recognizing the issues that surround the need for dairy development, LOLC undertook certain initiatives to revive the ailing national dairy industry. By giving farmers the required investment to purchase cattle, LOLC has renewed the interest in this sector. However, noting the need for a facilitator that adds value across the value chain of the industry, LOLC has taken upon itself the role of a counselor to the farming community. By lending support through technical and marketing know-how, it has assisted the dairy farmer community to increase efficiencies. This includes enhanced animal productivity, fodder and nutritional efficiency through bio-genetics and efficiency in collection, storage and distribution.

Operating in a private-public partnership, LOLC is currently pursuing a strategy that aims to encase the sustainability cycle of the sector - social and environmental - through the establishment of a bio-digester programme. By pursuing such a strategy, the dairy farmer community will have access to bio-fuel through the use of cattle manure, thus, enhancing their return on investment.