By: Staff Writer
March 12, Colombo (LNW): As Nestlé Lanka celebrates 120 years of operations in Sri Lanka, the multinational food company is not only expanding manufacturing but also deepening its focus on sustainability, agriculture and youth employment.
The company recently announced a Rs. 9 billion investment plan to upgrade its manufacturing capacity over the next four years, primarily at its production facility in Pannala. While part of the investment will strengthen local supply chains, a major component is aimed at expanding export-driven production.
Chairman and Managing Director Bernie Stefan said the company views Sri Lanka not only as a domestic consumer market but also as a strategic export hub within its South Asian operations.
One of the fastest-growing export products is coconut milk powder, which has seen rising international demand due to the global shift toward plant-based foods. Markets in the United States, China, and parts of Europe are increasingly embracing coconut-based alternatives to dairy.
Nestlé Lanka is already among Sri Lanka’s leading exporters of coconut milk powder, and the company plans to scale up production to meet growing demand.
Beyond exports, the company is also investing heavily in local agricultural partnerships. Nestlé Lanka works with more than 7,000 dairy farmers and purchases about 130 million coconuts each year, creating income opportunities for thousands of rural households.
Through its Coconut Cultivation Board partnership, the company operates the Nestlé Coconut Development Plan, which provides farmers with hybrid coconut seedlings, fertiliser support and training in regenerative agricultural practices.
More than 5,000 coconut growers have benefited from the program so far, helping improve productivity and sustainability within the sector.
Youth development has also become a major focus area. Through the global Nestlé Needs Youth initiative, the company partners with universities and career-development programs to help young people transition into the workforce.
According to Stefan, around 10,000 students have been reached through mentorship programs, internships and university collaborations.
“Many professionals who began their careers with Nestlé have gone on to succeed across various industries,” he noted, describing the initiative as an investment in the country’s future workforce.
Environmental sustainability is another key pillar of Nestlé Lanka’s long-term strategy. The company has announced plans to become 100 percent plastic neutral by 2026, meaning that it will collect and recycle an amount of plastic equal to the packaging it releases into the market.
This initiative aligns with the global Nestlé commitment to achieve net-zero carbon emissions by 2050.
At the local level, Nestlé Lanka has introduced several environmental measures, including biomass boilers and renewable electricity at its manufacturing plant and shifting portions of its logistics operations to rail transport to reduce carbon emissions.
With its latest investment, the company aims to combine industrial expansion with social and environmental initiatives strengthening its role not only as a manufacturer and exporter, but also as a long-term development partner in Sri Lanka’s economy.