For the first time in Sri Lanka’s pharmaceutical sector, Sunshine Healthcare has entered into a strategic joint venture with India’s Zydus Lifesciences Ltd. to establish a pharmaceutical manufacturing facility san any buy-back guarantee from the government.

The new entity, Zydus Sunshine Lifesciences Pvt Ltd., will develop a pharmaceutical manufacturing facility at the Board of Investment (BOI) zone in Horana with an investment of USD 20 million. The plant will focus on producing pharmaceutical products for Sri Lanka’s private sector retail market, aiming to improve access to high-quality medicines while strengthening national supply chain resilience.

Company officials highlighted that the venture will operate without a government buy-back guarantee, marking a notable departure from traditional models in the sector. They also described it as the first Indian–Sri Lankan joint venture pharmaceutical manufacturing company of its kind in Sri Lanka.

“We did not need to depend on government sales,” said Shyam Sathasivam, Group Chief Executive Officer of Sunshine Holdings PLC.

Sunshine Holdings Chairman Vish Govindasamy said the initiative comes at a critical time as Sri Lanka prioritises domestic production in essential sectors. He noted that strengthening local pharmaceutical manufacturing capacity is expected to enhance supply security, reduce dependence on imports, and improve the affordability and availability of medicines.

He added that the project is also expected to generate around 300 employment opportunities, contributing to local economic development and technical skill development within the healthcare manufacturing sector.

He also said the company is keen to explore the once-daily, three-in-one blood pressure pill developed by the University of Kelaniya.

Dr. Sharvil Patel, Managing Director of Zydus Lifesciences Ltd., said the partnership reflects the importance of building strong local capabilities to support resilient healthcare systems. He noted that Zydus brings global manufacturing expertise, while Sunshine Healthcare contributes deep local market experience.

He further said the company has been marketing its products in Sri Lanka for over 30 years and that the trust built over this period was a key factor behind the decision to invest in a local manufacturing facility.

He also confirmed that the first “Made in Sri Lanka” pharmaceutical products from the venture are expected to be launched in 2028.

The new facility is expected to enhance local pharmaceutical production capacity, improve supply chain stability, and support Sri Lanka’s long-term strategy of reducing import dependency in essential healthcare products.

Zydus Lifesciences Ltd, employs around 30,000 people worldwide, including 1,500 scientists and has many other manufacturing facilities. (Shirajiv S.)