MILCO proves state institutions can be rebuilt by ending corruption: Prime Minister

Colombo, Feb. 3 (Daily Mirror) - Prime Minister Dr. Harini Amarasuriya said that MILCO has demonstrated that state institutions can be transformed into strong and profitable entities by eliminating fraud and corruption and ensuring proper management.

The Prime Minister made these remarks while attending the MILCO National Dairy Farmers' Profit Sharing, Introducing Farm/Farm Family Insurance and Appreciation Programme 2026, held on February 2 at Temple Trees.

She said that the Government is confident of building an economy that delivers benefits to everyone, paving the way for a new transformative era. Emphasizing the Government’s commitment to economic democracy, the Prime Minister said all producers across the country must be integrated into the production process and benefits shared equitably.

Highlighting MILCO’s performance, she noted that dividends are being distributed after a gap of 21 years, pointing to the extent of mismanagement under previous administrations. “If we were able to achieve this within fifteen or sixteen months, it clearly shows the fraud committed by those who managed these institutions for decades,” she said, adding that the time has come to correct those wrongs and rebuild public institutions properly.

MILCO recorded its highest sales turnover in 2025 and achieved a historic net profit. Under the programme, incentives are to be distributed to 22,000 dairy farmers affiliated with MILCO, with dividend payments symbolically awarded to 2,000 farmers at the ceremony. Incentives were also provided to dairy farmers across all provinces, while field officers were recognized for their contributions.

Membership certificates for pension entitlements under the Dairy Farmer Retirement Scheme, jointly implemented by the Social Security Fund and MILCO, were also awarded.

Agriculture, Livestock, Lands and Irrigation Minister K.D. Lalkantha said MILCO’s transformation into a high-income-generating enterprise was achieved through people-oriented policies of the new Government. He assured continued Government support to address challenges faced by dairy farmers and urged them to maintain high standards in the dairy industry.

The event was attended by several Ministers, Members of Parliament, senior officials, MILCO representatives and dairy farmers from across the island.