Sri Lanka is set to strengthen its pharmaceutical manufacturing sector through a planned investment of over US$20 million in a new medicine manufacturing facility in Horana. The project aims to expand local medicine production, reduce reliance on imported pharmaceuticals and improve the resilience of the country’s healthcare supply chain.
The investment is being undertaken by Zydus Sunshine Lifesciences Ltd., a proposed joint venture between India’s Zydus Lifesciences Ltd. and Sri Lanka’s Sunshine Healthcare, the healthcare arm of Sunshine Holdings PLC.
New Pharmaceutical Manufacturing Facility in Horana
The joint venture signed an agreement with the Board of Investment of Sri Lanka (BOI) on 13 October 2026 to establish the manufacturing facility within the BOI zone in Horana. The project will occupy a site of nearly four acres, with commercial operations targeted for 2028, subject to project timelines and regulatory approvals.
During its initial phase, the facility will focus on producing oral solid dosage medicines for the Sri Lankan market. This is expected to strengthen domestic pharmaceutical manufacturing capacity and support the local availability of quality medicines.
Strengthening Local Manufacturing and Medicine Supply
The investment comes amid Sri Lanka’s continued efforts to reduce its dependence on imported pharmaceuticals and develop domestic manufacturing capabilities in essential healthcare products.
By combining Zydus’ international pharmaceutical manufacturing expertise with Sunshine Healthcare’s established presence in the local healthcare market, the joint venture aims to support technology transfer, strengthen production capabilities and improve medicine supply-chain resilience.
The project is also expected to contribute to the development of local expertise in pharmaceutical production, quality assurance, and scientific and technical functions.
Employment and Skills Development
The proposed facility is expected to create skilled employment opportunities, with more than 80% of its workforce anticipated to comprise Sri Lankan nationals. Specialised training and capability development are planned to build local skills in pharmaceutical manufacturing and quality assurance.
These initiatives could support the development of a more skilled workforce and contribute to the growth of Sri Lanka’s pharmaceutical industry.
Supporting Sri Lanka’s Investment Landscape
The planned pharmaceutical facility represents a further development in Sri Lanka’s efforts to attract investment into manufacturing and strengthen domestic industrial capacity.
The project brings together international technical expertise and local market knowledge, with potential benefits for employment, skills development and healthcare supply security. Its long-term contribution to reducing pharmaceutical imports will depend on its eventual production capacity, product range and ability to meet domestic demand once commercial operations begin.
As Sri Lanka continues to develop its investment landscape, projects in specialised manufacturing sectors such as pharmaceuticals highlight opportunities to build local capabilities, encourage technology transfer and support sustainable industrial growth.
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