Zydus Lifesciences Ltd and Sunshine Healthcare will invest over $20 million in phases to establish a pharmaceutical manufacturing facility in Sri Lanka, with commercial operations expected to commence in 2028, subject to project timelines and regulatory approvals.
Zydus Sunshine Lifesciences (Pvt) Ltd, the proposed joint venture between the Indian pharmaceutical company and Sunshine Healthcare, part of Sunshine Holdings PLC, signed an agreement with the Board of Investment (BOI) of Sri Lanka on October 13, 2026, to set up the facility in the BOI zone at Horana.
The project marks a step towards expanding local pharmaceutical manufacturing in Sri Lanka and strengthening the medicine supply chain in the island nation.
Four-acre facility to be developed in phases
The manufacturing plant will be developed on a site measuring nearly four acres. In the first phase, it will produce oral solid dosage forms for the Sri Lankan market.
The companies expect local production to improve the resilience of medicine supplies and support the availability of essential medicines. The phased investment of more than $20 million will support the development of the facility, although the companies have not specified the investment allocation across individual phases.
The project remains subject to the required regulatory approvals and the implementation schedule.
Joint venture announced in June
Zydus Lifesciences and Sunshine Healthcare announced the formation of their joint venture on June 26, 2026. The agreement with Sri Lanka’s BOI represents a further step towards translating that partnership into a manufacturing operation.
For Zydus, the facility is expected to support its international presence and its stated commitment to expanding access to quality medicines. Manufacturing within Sri Lanka could also help the company serve the local market through domestic production.
The initial focus on oral solid dosage forms provides the facility with a defined starting product segment. Further details on capacity, the product portfolio and any subsequent expansion phases have not been disclosed.
Local production and medicine security
The investment comes as pharmaceutical manufacturing capacity and supply-chain resilience remain important considerations for healthcare systems. Establishing production within Sri Lanka is expected to support the domestic availability of medicines, though the scale of its eventual contribution will depend on the facility’s capacity, product approvals and commercial ramp-up.
With operations targeted for 2028, the project’s next milestones will include facility development and the necessary regulatory clearances before commercial manufacturing can begin.