Business

The uphill battle towards pharmaceutical self-sufficiency

Published

4 years ago

2021/12/11

Can the local industry do more for less?

Sri Lanka’s pharmaceutical sector has stepped up to the plate during the past two years working tirelessly to cater to the national demand for drugs in the midst of import restrictions compelled by the global pandemic. The industry revival is a result of the Memorandum of Understanding followed by a Joint-Venture Agreement signed between State Pharmaceutical Manufacturing Corporation (SPMC) & the members of the National Chamber of Pharmaceutical Manufacturers of Sri Lanka (NCPM) in 2017. At present, 15- 20% of the total local drug requirement is fulfilled by SPMC, joint venture partners of SPMC – under strict adherence to quality standards stipulated by the SPMC and other homegrown manufacturers.

Pharmaceutical self-sufficiency falls in line with the national priority of retaining foreign currency in the country. Empowering local pharma is a win-win for all parties involved because it gives citizens better access to Government (SPMC) approved high quality medicine for affordable prices while generating occupational opportunities for local youth. In order to achieve self-sustainability local industry would require FDIs which would in turn bring international technology & know-how to Sri Lanka paving the way for the country to emerge as a ‘pharma hub’ capitalizing on the country’s strategic location in the Indian Ocean. The construction of three ‘pharma zones’ has already commenced in Anuradhapura, Hambantota & Millawa intending to attract such investments. The Millawa SPMC zone, largest of the three, is slated to house four state-of-the-art factories within it. The President of NCPM Dr. Lohitha Samarawickrema in a letter to media dated August 4 however said that the biggest impediment for yielding the optimum benefit from this joint venture is misinformation. He went on to say that contradictory reports create a sense of anxiety among the Sri Lankan public as well as demotivate potential local & foreign investors. According to NCPM President, up to 80-85% of the local production catering to ~15% of the total demand is supplied by SPMC joint venture stakeholders. The stakeholders collectively manufacture over 300 varieties of drugs which are then quality-tested and distributed through the state manufacturer (SPMC). He said the success of this Public-Private Partnership could augur well for the country’s economy as well as the general wellbeing of citizens and thus should not be stigmatized without a fair assessment. Given the strategic location of Sri Lanka, Dr. Samarawickrema went on to add that Sri Lanka was being seriously considered to be developed as a hub for vaccine manufacturing with Asian and African markets in mind. In that regard, a feasibility study is already underway to establish a vaccine manufacturing enterprise as a joint venture between Sri Lanka’s Kelun Life Sciences and China’s Sinovac Biotech Ltd. The local partner of this venture is the first homegrown manufacturer of saline & is credited with propelling Sri Lanka to full self-sufficiency in same. It has been reported that since the beginning of Covid-19, 200 new vaccine manufacturers have joined the production pipeline. The United States of America, Canada, Brazil and Mexico are considered the top vaccine manufacturers while some Latin American countries are among the Top 20 ranked vaccine manufacturers with self-sufficiency up to about 72%.

This NCPM-SPMC venture is especially meaningful considering that it served to positively disrupt the state monopoly on pharmaceutical drugs thereby ushering in new possibilities and opportunities for private sector stakeholders for productive collaboration. The Chamber firmly believes Pharma Industry’s initiative to work closely with the private sector sets a welcome precedent for other state sector enterprises, too, to follow suit. Combining the State sector’s integrity and welfare-mindedness with the Private sector’s efficiency and ingenuity can elevate the local pharma sector from self-sufficiency to unprecedented heights from a trade standpoint. Pharma has immense potential to become one of the top foreign revenue earners for Sri Lanka in the ensuing years with due patronage from the State.

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Business

Embedding human rights, equity and integrity into business leadership

Published

10 hours ago

2026/03/5

Sahan Weerasooriya

Rathika de Silva, Executive Director

At its 2026 Social Sustainability Programme Kick-Off, the UN Global Compact Network Sri Lanka convened business leaders to advance the translation of global ambition into practical corporate action on inclusion, integrity and human rights.

On 24 February 2026, the UN Global Compact Network Sri Lanka (Network Sri Lanka) convened business leaders at Barefoot Garden Café for its 2026 Social Sustainability Programme Kick-Off, delivered in collaboration with Good Life X.

The gathering did more than introduce a calendar of events. It positioned Sri Lanka’s corporate community within the broader direction of the UN Global Compact’s 2026–2030 global strategy — a strategy anchored in three imperatives: equipping companies to act, catalyzing collective action, and advancing the business case for responsible leadership.

At its core, the 2026 Social Sustainability agenda is designed to move companies from commitment to capability.

Within the Diversity & Inclusion Working Group, this means building practical pathways toward equal pay for equal work and strengthening male allyship as a governance issue rather than a cultural afterthought. It means examining sexual and reproductive health, disability inclusion, and mental health not as employee benefits, but as structural determinants of productivity and retention. It means sharpening strategic communications so inclusion is embedded in brand integrity. It also means applying science-based behavioural change approaches to shift organizational culture in measurable ways.

Across the Business & Human Rights Working Group, equipping companies takes the form of deepened engagement on decent work and living wage implementation, strengthening human rights due diligence processes, and addressing emerging risk areas such as AI and digital rights. It extends to reinforcing business integrity and anti-corruption frameworks, understanding the social dimensions of a just transition, and recognizing the link between child rights, nutrition, and workforce productivity.

Business

Union Bank to raise LKR 3 Bn via Basel III Compliant Debenture Issue

Published

10 hours ago

2026/03/5

Sahan Weerasooriya

Shanka Abeywardene

Union Bank of Colombo PLC announced its proposed Debenture Issue 2026, a strategic move aimed at raising up to LKR 3 billion. This issue is designed to bolster the Bank’s Tier II capital base and provide a robust financial foundation for its upcoming growth initiatives.

The offering consists of Basel III compliant, listed, rated, unsecured, subordinated, redeemable high-yield debentures with Non-Viability Conversion. The instrument has been assigned a rating of BB (lka) by Fitch Ratings (Lanka) Ltd, reflecting the bank’s creditworthiness and the structured nature of the subordinated debt.

Investors can choose from three distinct interest structures starting from a high-yield 13% fixed rate per annum (Type A). This option is paid annually, while Type B offers a 12.5% fixed rate paid semi-annually (12.89% AER). For those seeking market-linked returns, Type C provides a floating rate of the 182-days Treasury Bill rate plus a 400-basis point margin, also paid semi-annually.

The debentures are priced at LKR 100 per unit with a 5-year tenure (2026–2031). The initial issue size is set at 20,000,000 debentures with an option to raise 10,000,000 at the discretion of the Bank and is scheduled to open on 10 March 2026.

Shanka Abeywardene, Chief Financial Officer of Union Bank stated “This debenture issue marks a significant step in the Bank’s journey towards enhanced financial stability. By strengthening its capital adequacy, Union Bank is well-positioned to navigate evolving market conditions while fuelling its long-term strategic objectives for sustainable growth”

Business

Sanjay Kulatunga appointed to WindForce Board

Published

10 hours ago

2026/03/5

Sahan Weerasooriya

Sanjay Kulatunga

WindForce PLC announced the appointment of Sanjay Kulatunga as an Independent, Non-Executive Director to its Board with effect from 03rd March 2026, following the resignation of Dilshan Hettiaratchi. The appointment further strengthens the Company’s governance framework, strategic oversight, and long-term decision-making capabilities.

Kulatunga brings an established track record as a founder, entrepreneur, and senior executive across financial services and export-oriented industries. He is the Chief Executive Officer and Co-Founder of LYNEAR Wealth Management, a boutique investment firm established in 2013, which has since grown to become one of Sri Lanka’s largest private wealth management institutions, serving high-net-worth individuals as well as local and international institutional clients.

Prior to founding LYNEAR, Kulatunga played a pivotal role in the establishment of Amba Research, an investment research offshoring firm rooted in Sri Lanka and now operating as part of Acuity Analytics.

Over the years, he has contributed extensively to several key national institutions. His previous appointments include serving on the Financial Sector Stability Consultative Committee of the Central Bank of Sri Lanka, as well as the Board of Investment of Sri Lanka and the Securities and Exchange Commission of Sri Lanka.