Federated Farmers is backing a new partnership between New Zealand and Sri Lanka that aims to improve its dairy productivity.

Prime Minister Ranil Wickremesinghe and his New Zealand counterpart John Key announced yesterday New Zealand would assist in improving Sri Lanka's dairy productivity.

It includes helping Sri Lanka introduce New Zealand farming technology.

New Zealand's Primary Industries Minister Nathan Guy said the system captures and analyses data so farmers can better link on-farm practices to farm outputs and revenue.

"The Sri Lankan FarmIQ pilot will specifically measure the impact of dairy farm inputs and practices against milk output, quality and profitability, and will help support overall dairy sector development in Sri Lanka," Guy said.

Federated Farmers vice president Anders Crofoot says increasing trade links may help stabilise the Sri Lanka.

"They've been through a pretty rough patch for the last quite long while in terms of their economy and internal problems, and that seems to be settling down. If we can get them engaged in trade then that generally benefits both parties.

"The idea of actually opening up trade into that part of the world is quite good. They're reasonably nearby, they're seen as a gateway into other markets."

Wickremesinghe is heading to Waikato on Sunday to see a Fonterra factory. He's visiting Fonterra's processing site at Horotiu and will meet the co-operative's chairman, John Wilson. He's also planning to visit Hobbiton.