Govt. to help local investors start JVs with foreign firms in proposed pharmaceuticals hub

The Government will extend help to local investors who are keen to start joint ventures with foreign firms in the proposed pharmaceuticals hub.

The move was revealed by Economic Development Minister Basil Rajapaksa when a delegation from the Pharmaceuticals Export Promotion Council of India called on him Thursday to discuss about setting up of a pharmaceuticals hub in Sri Lanka.

The Minister said during his recent visit to Sri Lanka, Indian Minister of Commerce, Industry and Textile Anand Sharma discussed the possibilities of establishing a pharmaceuticals hub in Sri Lanka and informed that a delegation representing the Indian pharmaceuticals industry would be sent to discus about this proposal.

This Indian delegation met Minister Rajapaksa with a view to furtherance negotiations on this proposal and start preparatory work for Indian pharmaceuticals investment in Sri Lanka.



The Minister said in the last year’s Budget speech, President Mahinda Rajapaksa emphasised the importance of developing Sri Lanka’s pharmaceuticals industry. Therefore many opportunities are available in the country’s pharmaceutical manufacturing, infrastructure, equipments and machinery sectors. “Indian interest in this regard is encouraging and the initiative taken by Indian Minister Sharma is highly appreciated,” he said.

Sri Lanka is one of the few countries in the world providing free health facilities to all the citizens. The country imports 80% of its pharmaceuticals requirements. However, the proposed Sri Lankan pharmaceuticals hub should cater to the global market and should not depend on the local market.

“The Government will provide all facilities to initiate the pharmaceuticals hub and facilitate local investors to set up joint ventures with Indian and other investors. Sri Lanka has private sector pharmaceuticals manufacturers as well as public sector manufacturing firms. These existing institutions can benefit from the proposed hub by participating in joint ventures and absorbing new technology and knowhow,” Minister Rajapaksa said.

Dr. P.V. Appaji, Director General Pharmaceuticals Export Promotion Council of India, said the Indian pharmaceuticals industry was one of the largest industries in the world, which produces 50 per cent of the world’s requirement. It is the biggest pharmaceuticals producer in the term of value and third biggest producer in the term of volume in the world market. India has gained experience in bulk manufacturing through the Jawahalal Neru Pharmaceuticals city project.

Indian Ambassador Ashok Kantha said India would provide all necessary assistance and cooperate with Sri Lanka to realise the proposal of the pharmaceuticals hub. Sharma has taken immediate steps to send this team in order to expedite the initial work of the project. Indian pharmaceuticals manufacturers will get together with Sri Lanka local manufacturers and new investors to start joint ventures and private-public partnership projects.

Minister Rajapaksa directed the BOI officials to inspect the Biyagama and Mawathagama BOI sites with the Indian delegation, in addition to other suitable sites to start the project

Deputy Minister of Industry and Commerce Jayarathna Herath, Secretary to the Ministry of Industries and Commerce Anura Siriwardhana, Secretary to the Ministry of Health Dr. Nihal Jayathilake, representatives from Government and private sector pharmaceuticals firms in Sri Lanka and BOI representatives participated in this discussion.