Zydus Lifesciences, Sunshine Healthcare launch $20mn pharma plant in Sri Lanka as the two companies strengthen their long-term commitment to local pharmaceutical production through a joint venture aimed at improving medicine availability, supporting employment, and enhancing the country’s healthcare resilience.
Zydus Lifesciences, Sunshine Healthcare launch $20mn pharma plant in Sri Lanka to boost local medicine production
Sunshine Healthcare and India’s Zydus Lifesciences have commenced construction of a new pharmaceutical manufacturing facility in Sri Lanka through their joint venture, Zydus Sunshine Lifesciences Pvt Ltd, with an investment exceeding US$20 million.
The foundation stone for the manufacturing plant was laid on Friday at the Board of Investment (BOI) Zone in Horana, where the facility will be developed on nearly four acres of land. The project marks one of the latest investments in pharmaceutical manufacturing in Sri Lanka and is expected to strengthen domestic production capabilities while reducing dependence on imported medicines.
According to a joint statement issued by the companies, the facility will manufacture pharmaceutical products primarily for Sri Lanka’s retail market. The plant is expected to improve access to high-quality medicines while reinforcing the country’s pharmaceutical supply chain and supporting long-term healthcare security.
The partnership combines Zydus Lifesciences’ international expertise in pharmaceutical research, development and manufacturing with Sunshine Holdings’ extensive local healthcare network and distribution capabilities. Together, the companies aim to establish a modern production facility that meets international manufacturing standards while serving the growing needs of Sri Lankan patients.
Speaking at the event, Zydus Lifesciences Managing Director Sharvil P. Patel said strong local manufacturing capabilities are essential for building resilient healthcare systems. He noted that combining Zydus’ global manufacturing experience with Sunshine Holdings’ local expertise represents an important milestone in strengthening Sri Lanka’s healthcare ecosystem and developing sustainable pharmaceutical capabilities for the future.
Sunshine Holdings Group CEO Shyam Sathasivam said the collaboration reflects the company’s commitment to expanding domestic pharmaceutical production while supporting the country’s healthcare sector. He said the joint venture would enhance local pharmaceutical manufacturing, create skilled employment opportunities, and improve access to essential medicines for consumers across Sri Lanka.
Beyond manufacturing, the project is also expected to facilitate technology transfer and strengthen local technical expertise within the pharmaceutical industry. By introducing advanced production processes and global best practices, the venture is expected to contribute to the long-term growth of Sri Lanka healthcare while helping develop a more competitive domestic pharmaceutical sector.
Zydus Lifesciences brings extensive global experience across pharmaceutical formulations, active pharmaceutical ingredients (APIs), medical technology, diagnostics, animal healthcare, and consumer wellness products. The company said its manufacturing expertise will play a central role in establishing and scaling the new facility.
The investment also aligns with Sri Lanka’s broader objective of increasing local pharmaceutical production and improving healthcare self-sufficiency. Expanding domestic manufacturing capacity is expected to strengthen supply chain resilience, particularly during periods of global market disruptions, while supporting economic development through new industrial investment and job creation.
The project will operate under the oversight of the Board of Investment, with the Ministry of Health and the National Medicines Regulatory Authority (NMRA) serving as key regulatory stakeholders. The companies confirmed that all products manufactured at the facility will fully comply with NMRA regulations and applicable pharmaceutical pricing frameworks.
As construction progresses, the joint venture is expected to become an important contributor to Sri Lanka healthcare, supporting the availability of quality medicines while positioning the country for greater pharmaceutical manufacturing capability in the years ahead. The announcement further underscores growing investor confidence in Sri Lanka’s healthcare and life sciences sector as the country seeks to expand local value-added industries.