Govt. starts work on first pharma zone

Sri Lanka has begun preliminary work on country’s first pharmaceutical manufacturing zone. Boosted by the government’s buy back assurance on drugs made in the zone as well as the more than 10 per cent rate of increase in country’s annual pharmaceutical expenditure, the Ministry of Industry and Commerce this week began mapping out the first steps in developing the 48 acre (19.4 Ha) land-plot slated for the project.

The dedicated zone which will initially cater to the domestic market, will not only make pharmaceutical products but will also be expanded to produce medical equipment.

On 20 October, Cabinet Spokesman and Media Minister Keheliya Rambukwella announced that Sri Lanka is planning a dedicated industrial park for pharmaceutical manufacturers in Kurunegala at a 48 acre block of land identified to promote the local pharmaceutical industry, on a proposal by Minister of Industry and Commerce Rishad Bathiudeen. Minister Rambukwella added that over 10 reputed pharmaceutical manufacturers’ have expressed their willingness to invest in this industry.

According to the Business Monitor International which analyses country risks across 175 countries, the projected expenditure for Lankan pharmaceuticals for 2011 is expected to increase by 15 per cent (to US $444 Mn) in comparison to 2010.

Such a rate of increase in annual pharma expenditure expense lately has resulted in a highly competitive market, with more than 300 products coming from various foreign pharmaceutical manufacturers (in addition to domestic manufacturers’) and competing for the Sri Lankan consumer.

The proposed dedicated zone, which is less than 5 km from Kurunegala city, is to be located at a Grama Niladhari Division (an administrative unit) called Rathgalla in the Kurunegala DS Division(an administrative unit), subject to the approval of the Chief Minister of the North Western Province.

Upon approval from the Wayamba Provincial Council, the 48 acre state land plot identified here will be transferred to the Ministry of Industry and Commerce to start groundwork immediately.

According to the Director of Regional Industrial Development, H.P. Jayananda, land plots for each successful project proposal would be allotted on the basis of a 50 year lease. “When selecting projects, priority will be given to projects that will invest Rs. 100 million (US $ 906,000) or more,” Jayananda said.

Detailing the zone, Jayananda said: “Since this is unlike any other industrial zone in Sri Lanka and it is set to manufacture lifesaving products, special preparations are required for which we are gearing now – a main component is related to maintaining clean, non-polluted environment in the zone area. We have already requested for Environment Impact Assessment from Wayamba Environment Authority.

The Industrial Technology Institute (ITI) has been selected by us to conduct the EIA.  The available water quality and quantities in the area should be good standards, if not very good. Therefore we will also be surveying the target area with the support of the National Water Supply and Drainage Board.

Since we will be manufacturing crucial products to our lives, the outdoor air quality need to be always clean and related measures such as microbiological monitoring of air quality as required by international drugs manufacturing guidelines will be adhered to. In that, we need to make sure that no air pollution challenges exist here. Therefore air quality tests will be done.”

According to Jayananda, special infrastructure usually not required in our other industrial zones will be put in place and this special infrastructure could form separate projects on their own. “For example, before starting production in the dedicated zone, we will need to pre-build special effluent disposal systems and mass scale industry grade sterilisation facilities that are a must in sites such as this. They will require high investments,” Jayananda said.

Speaking of the benefits of the zone, Jayananda said: “Specialised employment opportunities will also be available to Sri Lankans. Some of them are chemists, pharmacists, lab technicians, scientists, high tech packaging and logistics as well as for unskilled labour. High tech transfer in to the country will definitely take place giving scope for future pharma manufacturing ventures in the country. Also, once production starts, local drug prices would fall giving benefit to our consumers.”