NAQDA and Aqua Hatcheries (Pvt) Ltd signed a public–private partnership agreement to establish a Milk Fish hatchery at Negambo in the Western province of Sri Lanka on 28 th September, 2005. As the site of this venture is located at a short distance away from the shrimp farming area there is a vast potential for farming milk fish produced in the hatchery on a crop rotation basis with shrimps. This will help the shrimp aquaculture industry which has been severely affected by environmental degradation. Farming milk fish on a crop rotation basis will reduce the organic load in the ponds. The establishment of the above facility is being sponsored by Aquatic Resources Development and Quality Improvement Project, funded by the Asian Development Bank.

It was also reported that there is a huge demand for milk fish as live bait for the long line tuna fishery in Sri Lanka and NAQDA believes that this hatchery will help to enhance tuna catches by supplying milkfish as bait.

The agreement was signed by Mr. C.R. Tilak Chairman of NAQDA and Mr Anura Paranagama Aqua Hatcheries (Pvt) Ltd.