Cabinet nod for Rs. 28.2 b investments for Anuradhapura pharma zone

Thursday, 25 March 2021 00:24 - - {{hitsCtrl.values.hits}}

Committee of experts select 24 investors
100 acre zone one of three set up by Govt.
Land to be released to investors for 35 years

Cabinet has approved Rs. 28.2 billion worth of investments for the Anuradhapura pharmaceutical zone, a top official said yesterday.

Cabinet Spokesman Keheliya Rambukwella told reporters at the weekly online Cabinet briefing that a committee of experts have selected 24 companies who are expected to invest about Rs. 28.2 billion on the project.

“Land plots will be leased to selected local investors for a period of 35 years with a release period for the first five years. This is part of the Government’s efforts to promote local production and safeguard reserves. The zone will primarily manufacture surgical equipment and widely used drugs,” he said.

The proposal tabled by Health Minister Pavithra Wanniarachchi to implement the manufacturing of pharmaceuticals in the proposed pharmaceutical manufacturing zone, was approved by the Cabinet. Supplying and regulating the investment as a strategic project will be done by the State Ministry of Indigenous Medicine Promotion, Rural and Ayurveda Hospitals Development and Community Health.

This 100 acre pharmaceutical zone to be set up in Oyamaduwa, Anuradhapura will be one of three proposed by the Government. The other two will be in Hambantota and Horana with the former already receiving preferential tax support from the Government.

Last year the Government focused on increasing the production of medicine locally pointing out that Sri Lanka spends about Rs. 130 billion annually on medical imports. The Government hopes to reduce this cost by 50% in the next three years and efforts will be made to simplify regulatory approvals for locally made pharmaceuticals. Sri Lanka also hopes to supply drugs to African and Southeast Asian markets.