The Sri Lanka Export Development Board (EDB) on 1 July held a high-level discussion with the Sri Lanka Pharmaceutical Manufacturers Association (SLPMA) to advance the country’s pharmaceutical sector, with particular focus on boosting exports and addressing long-standing industry hurdles.
The meeting, described by participants as both productive and forward-looking, brought together key SLPMA representatives including President Nalin Kannangara, Senior Vice President Dinesh Athapaththu, Vice President Viraj Manatunga, Dr. Janaka Wickramasinghe of Navesta Pharmaceuticals, Dr. Anoop Segar of Sands Active, and Kalana Hewmallika, Chairperson of Gamma Interpharm.
Sri Lanka’s pharmaceutical manufacturing industry is increasingly viewed as a vital area for economic growth.
Currently, around 25 local manufacturers have invested more than Rs. 100 billion over the past decade, seeking to expand capacity to serve both domestic and foreign markets.
Despite this momentum, local producers still hold just a 15% share of Sri Lanka’s pharmaceutical market.
Most production - over 80% - caters to government procurement through the Medical Supplies Division (MSD). In 2024, pharmaceutical exports from Sri Lanka stood at a modest $ 8.07 million.
Speaking during the discussion, SLPMA President Nalin Kannangara pointed out that the association’s 23 member companies supply roughly 35% of pharmaceutical needs to government hospitals and manufacture more than 235 products domestically.
However, he underlined that stringent global regulatory requirements continue to be a major barrier to scaling exports.
Kannangara also called for an extension of the government’s buyback agreement, which helped local producers grow from making 15 products in 2015 to 235 today. “The extension of this scheme will enable larger batch production, drive down unit costs, and sharpen the industry’s edge in international markets,” he said.
Participants also highlighted that exporting pharmaceuticals is far more complex than many other product categories.
Registration with regulatory authorities in the importing country can be time-consuming and costly, while processes such as authenticating product registration and Good Manufacturing Practice (GMP) certificates add to the administrative burden.
Stakeholders pressed for more institutional support to ease these hurdles and help companies secure a foothold in overseas markets.
SLPMA Vice President and EDB Pharmaceutical Advisory Committee Chairperson Viraj Manatunga stressed the urgency of adopting a comprehensive national strategy for pharmaceutical manufacturing.
He acknowledged groundwork already done by the EDB in collaboration with the Ministry of Health and WHO Sri Lanka, which has led to an Asian Development Bank-funded initiative to develop a strategy for the sector.
This framework is now nearing completion following an extensive situational analysis. “The true test will be in the implementation and adaptability of this strategy, which is critical to unlocking the sector’s export potential,” Manatunga said.
EDB Chairperson Mangala Wijesinghe concluded the session by encouraging industry players to consolidate and present the sector’s key issues to the Export Development Council of Ministers, chaired by the President.