Business
Zydus, Sunshine launch US$20 million pharma plant in Horana to boost local drug manufacturing
A market-driven investment backed by confidence in local pharmaceutical manufacturing
Sri Lanka’s drive to strengthen domestic pharmaceutical manufacturing received a major boost last week with the launch of a US$20 million joint venture between India’s Zydus Lifesciences and Sri Lanka’s Sunshine Healthcare to establish a modern pharmaceutical manufacturing facility at the Board of Investment (BOI) zone in Horana.
The foundation stone for the new plant, to be built on nearly four acres, was laid by the leadership of the two companies in the presence of senior executives and stakeholders. The facility will manufacture pharmaceutical products for the local retail market, helping improve the availability of quality medicines while reducing Sri Lanka’s dependence on imports.
The venture, operating as Zydus Sunshine Lifesciences Pvt. Ltd., combines Zydus’ global pharmaceutical manufacturing expertise with Sunshine Healthcare’s extensive distribution network and strong presence in Sri Lanka’s healthcare sector. The project is expected to facilitate technology transfer, create skilled employment, and strengthen the country’s healthcare supply chain.
Speaking at the ceremony, Dr. Sharvil P. Patel, Managing Director of Zydus Lifesciences, said the investment reflected the company’s long-standing commitment to Sri Lanka, where it has operated for more than three decades.
“We have always believed that strong local capabilities are key to resilient healthcare ecosystems,” he said. “Through Zydus Sunshine Lifesciences, we seek to contribute to the development of a stronger pharmaceutical manufacturing base in Sri Lanka by combining global scientific expertise with deep local execution capabilities.”
Dr. Patel added that the project would go beyond manufacturing by creating high-quality employment opportunities across science, technology, healthcare and operations, helping nurture the next generation of talent in Sri Lanka’s pharmaceutical industry.
Sunshine Holdings Deputy Chairman Vish Govindasamy described the venture as a significant progression in Sri Lanka’s future at a time when countries are seeking to secure stable supply chains.
“The establishment of Zydus Sunshine Lifesciences contributes directly to building greater pharmaceutical security for Sri Lanka,” he said. “Together, we are combining global knowledge with local capability to strengthen pharmaceutical manufacturing, healthcare resilience and our commitment to serving the Sri Lankan people.”
Govindasamy noted that the project represents the largest foreign direct investment into Sri Lanka’s pharmaceutical manufacturing sector to date, with the initial equity capital of US$10 million contributed equally by the two partners. Sunshine Healthcare’s participation has been supported by the International Finance Corporation’s US$11 million equity investment made last year to support the company’s growth strategy.
The new manufacturing facility will operate under the oversight of the BOI, with the Ministry of Health and the National Medicines Regulatory Authority providing regulatory supervision. All products manufactured at the plant will comply with NMRA standards and applicable pricing regulations.
The investment comes as Sri Lanka continues efforts to expand local production of essential medicines following recent economic challenges that exposed vulnerabilities in import-dependent supply chains. By increasing domestic manufacturing capacity, the partners expect the project to improve medicine availability, strengthen supply security and support the country’s broader healthcare resilience while generating high-value employment and industrial growth.
The foundation stone ceremony marked the formal commencement of construction, with both partners expressing confidence that the venture would play a meaningful role in advancing Sri Lanka’s long-term healthcare and manufacturing ambitions.
Unlike many local pharmaceutical manufacturers that operate under government buy-back agreements guaranteeing sales to the public health system, Zydus Sunshine Lifesciences will initially rely entirely on Sri Lanka’s private healthcare market. The partners are betting that locally manufactured, high-quality medicines can successfully replace imported products, making the venture commercially viable without state purchase guarantees. However, Sunshine Holdings Deputy Chairman Vish Govindasamy told The Island Financial Review that the company would welcome opportunities to supply the government sector as well, should the authorities choose to procure its products in the future.
By Sanath Nanayakkare
Business
ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka
The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.
The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.
“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”
Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.
Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.
Business
USD 40.84m pipeline to secure aviation fuel supplies to BIA
By Ifham Nizam
The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.
Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.
‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.
The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.
The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.
Business
CSE activity up, turnover weak at Rs. 1.4 billion
By Hiran H Senewiratne
Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.
Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.
In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.
The Banking and manufacturing sector counters performed well. In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.
Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.
Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.
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