Zydus-Sunshine JV to invest over $ 20 million in Horana pharma plant
Daily FT: Indian life sciences group Zydus Lifesciences Ltd., and Sri Lanka’s Sunshine Holdings PLC are partnering to invest over $ 20 million in a pharmaceutical manufacturing facility in Horana, in a move aimed at expanding local medicine production and reducing reliance on imports.
The proposed joint venture, Zydus Sunshine Lifesciences Ltd., signed an agreement with the Board of Investment of Sri Lanka (BOI) to establish the facility within the BOI zone in Horana. The project will be developed on a site of nearly four acres, with commercial operations targeted for 2028, subject to project timelines and regulatory approvals.
The investment brings together Zydus’ international pharmaceutical manufacturing expertise and Sunshine Healthcare’s established presence in Sri Lanka’s healthcare market, with the initial phase focused on producing oral solid dosage medicines for domestic consumption.
Local production is expected to strengthen the country’s pharmaceutical manufacturing base, improve medicine supply-chain resilience and support access to quality medicines. The investment also comes amid continued efforts to reduce Sri Lanka’s dependence on imported pharmaceuticals and build domestic capacity in essential healthcare products.
Beyond manufacturing capacity, the venture is expected to facilitate technology transfer and develop local expertise in pharmaceutical production, quality assurance, and scientific and technical functions.
More than 80% of the facility’s workforce is expected to comprise Sri Lankan nationals, with specialised training and capability development planned to build skills in the high-value pharmaceutical industry.
Zydus Lifesciences operates across pharmaceuticals and consumer wellness, with an emerging medical technology business and an international presence spanning the United States, India and other markets. The group employs around 30,000 people worldwide, including 1,500 scientists engaged in research and development.
Sunshine Healthcare, the healthcare arm of Sunshine Holdings PLC, has operations spanning pharmaceuticals, medical devices, retail, manufacturing, research and development, and distribution. Its local market presence is expected to support the joint venture’s access to Sri Lanka’s healthcare sector.
The Horana facility will add to the BOI’s portfolio of manufacturing investments, with the venture seeking to combine international expertise with domestic production and workforce development.
The project’s contribution to import substitution and medicine security will depend on its eventual production capacity, product range and ability to meet domestic demand once commercial operations begin.
OSL take:
Sri Lanka’s healthcare sector is creating business/investment opportunities for foreign pharmaceutical manufacturers, medical technology companies and healthcare service providers as the country seeks to expand domestic production, strengthen medicine supply chains and reduce dependence on imported pharmaceuticals. The proposed investment of over US$20 million by India’s Zydus Lifesciences and Sunshine Holdings to establish a pharmaceutical manufacturing facility in Horana highlights the potential for foreign investors to partner with established local businesses to access the domestic market and develop manufacturing capabilities. Pharmaceutical manufacturing offers business/investment opportunities in generic medicines, essential drugs and other formulations. Foreign companies could explore joint ventures, technology-transfer agreements and contract manufacturing, combining international expertise with local market knowledge and distribution networks. Sri Lanka’s strategic location in the Indian Ocean also offers potential for export-oriented pharmaceutical operations, subject to regulatory approvals, quality standards and market-access requirements. Investors could explore supplying regional markets while using local manufacturing facilities to meet domestic demand. Beyond manufacturing, opportunities exist in pharmaceutical warehousing, cold-chain logistics, packaging and distribution. Investments in modern storage and supply-chain infrastructure could improve the availability of medicines, particularly temperature-sensitive products and specialised treatments. Medical devices, diagnostic equipment, laboratory technology and digital healthcare solutions offer additional avenues for investment as healthcare providers modernise their services. The Zydus–Sunshine venture demonstrates how foreign expertise and local partnerships could strengthen Sri Lanka’s pharmaceutical industry, facilitate technology transfer and create skilled employment.
| Article Code : | VBS/AT/20261019Z_2 |