The Colombo Stock Exchange has several listed firms which are large player in the country's milk powder business, including Lanka Milk Foods and Nestle.
Updated Sri Lanka's top producers have already sought permission for an immediate price increase of about 10 percent, with further price increases on the cards.
"Severe drought in Australia, coupled with the removal of subsidies for milk in Europe have made prices in the world market go up," Chetiya Sri-Nammuni, Director Corporate Affairs, Fonterra told LBO.
Fonterra is estimated to hold 60 percent volume-based market share in Sri Lanka. In addition to its flagship Anchor brand, it also supplies milk powder to a number of other packers.
First Round
A 400 gram pack of milk powder is now retailed in Sri Lanka at prices r