How Will the Zydus-Sunshine Healthcare Joint Venture Strengthen Sri Lanka’s Pharma Industry?
Indian pharmaceutical major Zydus Lifesciences has partnered with Sri Lanka’s Sunshine Healthcare to establish a pharmaceutical manufacturing facility in Sri Lanka through a joint venture named Zydus Sunshine Lifesciences. Backed by an investment of more than $20 million, the project aims to boost domestic drug manufacturing, reduce the country’s dependence on imported medicines, and strengthen healthcare supply chains.
The facility will be developed at the Board of Investment (BOI) zone in Horana on nearly four acres of land. Once operational, the plant will manufacture pharmaceutical products for Sri Lanka’s retail market while supporting the country’s long-term objective of building a more resilient and self-reliant healthcare ecosystem.
Why Is Sri Lanka Focusing on Local Pharmaceutical Manufacturing?
Sri Lanka has been actively encouraging domestic manufacturing following the economic crisis that exposed the risks of relying heavily on imported essential goods, including medicines. Strengthening local pharmaceutical production has become a strategic priority to improve medicine availability, reduce import dependency, and enhance healthcare security.
The new manufacturing facility is expected to contribute significantly to these objectives by producing quality medicines locally while facilitating technology transfer, creating skilled employment opportunities, and developing Sri Lanka’s pharmaceutical manufacturing capabilities.
The project will operate under the oversight of Sri Lanka’s Board of Investment (BOI), with all products complying with the standards and pricing regulations of the National Medicines Regulatory Authority (NMRA).
How Does This Partnership Benefit Both Zydus and Sunshine Healthcare?
The joint venture combines Zydus Lifesciences’ global pharmaceutical manufacturing expertise with Sunshine Healthcare’s well-established distribution network and strong market presence in Sri Lanka. This complementary partnership allows both companies to leverage their respective strengths while expanding access to locally manufactured medicines.
For Zydus, the investment represents another step in strengthening its international footprint beyond its traditional focus on the United States. For Sunshine Healthcare, the collaboration provides access to advanced manufacturing technologies and global pharmaceutical capabilities that can accelerate the growth of Sri Lanka’s domestic healthcare industry.
According to Zydus Managing Director Sharvil Patel, building strong local capabilities is essential for creating resilient healthcare ecosystems, and the partnership reflects the company’s long-term commitment to supporting healthcare infrastructure in emerging markets.
Why Is International Expansion Becoming a Key Growth Strategy for Zydus?
The Sri Lankan investment aligns with Zydus Lifesciences’ broader strategy of expanding its international formulations business across emerging markets and Europe. During FY26, the company’s international formulations business recorded nearly 40% year-on-year growth, reaching ₹3,070 crore, supported by strong demand across multiple geographies.
International formulations now contribute around 11% of Zydus’ pharmaceutical revenue, highlighting the growing importance of overseas markets outside North America. Establishing local manufacturing facilities in strategic markets enables the company to improve market access, strengthen supply chains, and build closer relationships with regional healthcare systems.
Zydus has maintained operations in Sri Lanka for more than three decades and currently has a diversified global portfolio spanning formulations, active pharmaceutical ingredients (APIs), biologics, vaccines, diagnostics, and consumer wellness products.
What Does This Investment Mean for the Future of Regional Healthcare Manufacturing?
The Zydus Sunshine Healthcare joint venture reflects a broader shift in the global pharmaceutical industry, where companies are increasingly investing in regional manufacturing hubs to improve supply-chain resilience and reduce dependence on cross-border imports.
Governments across emerging economies are encouraging local pharmaceutical production to enhance healthcare security, create skilled employment, and ensure uninterrupted access to essential medicines. For global pharmaceutical companies, such investments also offer opportunities to expand market presence while building stronger partnerships with local healthcare ecosystems.
As demand for affordable, high quality medicines continues to rise across South Asia, collaborations like this are expected to play an increasingly important role in shaping the region’s pharmaceutical manufacturing landscape.
