Horana, Sri Lanka: Zydus Lifesciences and Sri Lanka’s Sunshine Healthcare have formed a joint venture to set up a $20 million pharmaceutical manufacturing facility in Sri Lanka, aiming to boost local production and cut import dependence.
The foundation stone for Zydus Sunshine Lifesciences Pvt Ltd was laid Friday (June 26, 2026) at the Board of Investment zone in Horana. The plant will come up on nearly four acres of land and manufacture pharmaceutical products for Sri Lanka’s retail market.
Under the equal JV, Zydus Lifesciences will hold 50% equity and subscribe up to $5 million in one or more tranches, according to regulatory filings. The venture combines Zydus’ global expertise in pharmaceutical manufacturing with Sunshine’s local market presence and distribution network.
The project comes as Sri Lanka prioritises domestic production in essential sectors following recent economic challenges. The plant is expected to improve access to high-quality medicines, enhance supply chain resilience, support technology transfer, build local capability, and create skilled employment.
“This collaboration marks an important step in strengthening Sri Lanka’s healthcare ecosystem and building sustainable pharmaceutical capabilities for the future,” said Sharvil P. Patel, Managing Director, Zydus Lifesciences.
Sunshine Holdings Group CEO Shyam Sathasivam called it 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.”
The facility will operate under Board of Investment oversight, with the Ministry of Health and National Medicines Regulatory Authority as key stakeholders. All products will comply with NMRA regulations and applicable pricing frameworks.
