By: Isuru Parakrama
November 04, Colombo (LNW): Milco has achieved a record-breaking sales milestone, reaching Rs. 2 billion in revenue for October—the highest monthly revenue the company has ever posted.
The significant target was met just one month after the new administration took office, which Livestock Ministry Secretary Nishantha Wickramasinghe highlighted as a promising indicator of the government’s commitment to revitalising the state-owned enterprise.
Despite this achievement, Milco faces a significant financial challenge, with an outstanding bank loan of Rs. 1.8 billion and an annual interest obligation totalling Rs. 240 million.
Wickramasinghe noted that the prior government had planned to sell Milco following years of financial losses.
However, the current administration has shifted course, aiming instead to stabilise and eventually turn the organisation into a profitable entity.
Milco Chairman Hemajeeva Gotabhaya, appointed recently, credited the October revenue success to intensified efforts across the company, despite facing multiple operational challenges, including a severe labour shortage.
Gotabhaya described the organisation’s difficult state upon his arrival, with delayed payments to dairy farmers and an inactive internal audit division that had not conducted proper account checks in years.
Under his leadership, Gotabhaya and his board are working on a long-term strategy to ensure Milco’s growth and profitability.
Plans are being implemented to stabilise payments to farmers and improve auditing practices, whilst also increasing the supply of Milco products nationwide to meet consumer demand.
