Zydus Sunshine to invest over US$20 Mn in Horana pharmaceutical plant

An Indo–Sri Lankan joint venture between India’s Zydus Lifesciences Limited and Sunshine Healthcare will invest over US$20 million in a pharmaceutical manufacturing facility in the Board of Investment (BOI) zone in Horana, strengthening Sri Lanka’s domestic medicine production capacity and reducing reliance on imported pharmaceuticals

Zydus Sunshine Lifesciences (Pvt) Ltd signed an agreement with the BOI on October 13 to establish the facility on a site spanning nearly four acres, with commercial operations expected to commence in 2028, subject to project timelines and regulatory approvals.

The investment is expected to support technology transfer, generate skilled employment and strengthen the resilience of Sri Lanka’s pharmaceutical supply chain, while creating opportunities to develop local expertise in a high-value manufacturing industry.

The facility’s initial phase will focus on producing oral solid dosage medicines for the domestic market. Local production of essential medicines could help improve supply security and reduce exposure to external supply disruptions, while strengthening the country’s industrial capabilities.

The project brings together Zydus Lifesciences’ international pharmaceutical manufacturing expertise and Sunshine Healthcare’s established presence in Sri Lanka’s healthcare sector.

Zydus operates across international markets, including the United States and India, and 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.

More than 80 per cent of the new facility’s workforce is expected to comprise Sri Lankan nationals.

The project is also expected to provide specialised training and develop local capabilities in pharmaceutical manufacturing, quality assurance and scientific and technical functions.

The investment adds to Sri Lanka’s efforts to expand domestic pharmaceutical manufacturing, attract foreign investment and build higher-value industrial capacity.

By combining international expertise with local resources, the venture is expected to contribute to employment generation, skills development and greater resilience in the country’s healthcare industry.