Sri Lanka’s Yaden Laboratories expand: Unit II project officially launched in Katunayake
Daily FT: Yaden Laboratories Ltd., 100% Sri Lankan-owned and the nation’s leading pharmaceutical manufacturer, has announced a major expansion of its manufacturing footprint by initiating a new state-of-the-art project. This was formalised through the signing of a strategic agreement with the Board of Investment (BOI) of Sri Lanka to establish Unit II within the Katunayake Export Processing Zone (EPZ).
CMD Shashimal Dissanayake said: “Our signing with the BOI reinforces Yaden’s mission to strengthen Sri Lanka’s healthcare self-sufficiency. By investing in Unit II, we are not just expanding our capacity, but ensuring that our nation has consistent access to life-saving medicines produced right here at home”.
This new venture follows the resounding success of Unit I, Yaden’s existing sterile formulation finished dosage facility. Since commencing operations in October 2022 with an initial investment of $ 16 million, Unit I has supplied 6.5 million units of liquid injectables to the local market and achieved a historic milestone in September 2025 as the first-ever company in Sri Lanka to export sterile formulations, already supplying essential medicines to countries including Zambia, Somalia, and Cambodia.
The estimated investment value for the proposed expansion project is $ 25 million, marking a historic milestone as the first facility in Sri Lanka set to be equipped to handle lyophilized vials along with liquid injectables as dosage forms. This dedicated Unit II facility will utilize modern technology fully compliant with local and international GMP standards to export as well.
The agreement was formalised on Friday, 23 January 2026 between the BOI Investment Promotion team and Yaden’s leadership, including CMD Shashimal Dissanayake, Director Parana Hewage Sriyani Chandraseeli, CEO Prakash Babu, CFC Gayan Rajapakse, and Head of Legal Thilini Gunawardana.
OSL take:
Sri Lanka’s health industry is still an untapped sector with many business/investment opportunities. With a growing local as well as international demand for medical supplies including pharmaceuticals and medical equipment, Sri Lanka presents the ideal destination to set up manufacturing facilities given the availability of land, incentives and state assistance. Sri Lanka is also focused on increasing capacity in manufacturing pharmaceutical requirements in the country while gaining access to foreign markets for medical exports through strong trade ties with many foreign countries. The growth, expansion and profits recorded by businesses already engaged in the country’s pharmaceutical and other medical supplies manufacturing industry indicate the growth and business potential in Sri Lanka’s health industry, especially in the manufacturing sector. Given these developments and the continuous growth being recorded by Sri Lanka, foreign businesses/investors could explore the expanding business/investment opportunities in Sri Lanka’s health industry including the manufacturing of pharmaceuticals and other medical products.
| Article Code : | VBS/AT/20260206/Z_2 |