The decision is taken to minimise losses after the Consumer Affairs Authority refused their demand to impose a price hike on imported milk powder.
Accordingly, the companies say they have sufficient stocks only to last for a month and warn of a dearth by the end of next month.
Reports say that the companies have decreased issuing stocks by 50% last month, with the current percentage at 65%.
However, 'adaderana' had quoted State minister of Livestock, Farm Promotion and Dairy and Egg Related Industries - D.B. Herath as saying that they will not allow for a milk powder scarcity to take place.
He had added that promotions of liquid milk are already underway.