Zydus Lifesciences and Sunshine Healthcare have announced the setting up of a strategic Joint Venture (JV) company–Zydus Sunshine Lifesciences, with an investment commitment of over USD 20 million to establish a pharmaceutical manufacturing facility in Sri Lanka, strengthening local production and reducing import dependence.

The facility, to be located at the Board of Investment zone in Horana, will be developed on nearly 4 acres of land. The plant will focus on manufacturing pharmaceutical products for Sri Lanka’s retail market, improving access to high-quality medicines while supporting national supply chain resilience.

The JV combines Zydus’ global expertise in pharmaceutical manufacturing and technical know-how with Sunshine’s strong local market presence and healthcare distribution capabilities. The partnership will support technology transfer, build local manufacturing capability, and create employment, contributing to the long-term development of Sri Lanka’s healthcare ecosystem. The initiative comes at a critical time as Sri Lanka prioritises domestic production in essential sectors. By strengthening local pharmaceutical manufacturing capacity, the venture is expected to enhance supply security, reduce reliance on imports, and improve the affordability and availability of medicines.

Dr. Sharvil P Patel, Managing Director, Zydus Lifesciences, said, “We have always believed that strong local capabilities are key to resilient healthcare ecosystems. By combining Zydus’ global experience and manufacturing excellence with Sunshine Holdings’ local expertise, this collaboration marks an important step in strengthening Sri Lanka’s healthcare ecosystem and building sustainable pharmaceutical capabilities for the future.”

The project will operate under the oversight of the Board of Investment, with the Ministry of Health and the National Medicines Regulatory Authority (NMRA) as key stakeholders. All products will comply with NMRA regulations and applicable pricing frameworks.

Shyam Sathasivam, Group CEO, Sunshine Holdings, said, “This partnership is a strategic investment in Sri Lanka’s healthcare security and industrial growth. Together with Zydus, we aim to enhance local pharmaceutical manufacturing, create skilled employment, and improve access to essential medicines for Sri Lankan consumers.”