Manufacturing firms leap from factories to pharmacies
Manufacturing companies in Sri Lanka are venturing into the most unlikely of industries, such as pharmaceutical manufacturing, owing to the large import substitution opportunity, high growth potential, and the capacity to earn foreign exchange through exports of generic drugs and herbal medicines.
Maliban Biosimilars Pvt Ltd, which is part of the Maliban biscuit manufacturing group, is investing US$ 13.5 million in pharmaceutical manufacturing.
The Galle Face Group-owned Blue Ceylon Investments Pvt Ltd aims to invest $ 7 million in a pharmaceutical manufacturing facility. The Melwa group, into cable manufacturing, and a group dealing in casinos are also said to be interested in this sector, industry officials said.
The government buys 40 per cent of the Rs. 130 billion-worth pharmaceutical industry in the country. Locally manufactured pharmaceuticals represent only 15 per cent of the total market share, which is only 5 per cent of the private market, which shows the country’s heavy reliance on imports, accounting for 95 per cent of the sales. Pharma manufacturers said that the majority of pharmaceutical imports present a huge opportunity for local manufacturers to produce these medicines domestically. Firms often pursue diversification into dissimilar industries as a strategic approach to ease business risk. By spreading their operations across different markets, companies can boost profit stability, as downturns in one sector may be counterbalanced by successes in another. This strategy not only helps in stabilising earnings but also provides access to new financial resources, which can be critical for growth.
Pharma manufacturers have reached out to the Minister of Trade as well as the Minister of Health for establishing an industrial zone, specifically highlighting the Hambantota BOI Zone. The Oyamaduwa site that was designated for a project focused on producing a wide range of pharmaceutical products, including tablets, capsules, liquid medicines, injections, and surgical instruments, is not working out, they said. Local investors have been granted a 35-year lease for the land, with a five-year grace period before lease payments begin. The Health Minister’s initiative to create a pharmaceutical manufacturing zone which includes the regulation and supply of pharmaceuticals, received Cabinet approval as a strategic initiative under the previous government, manufacturers said. However, the implementation of this plan has faced significant delays due to low oversight from the Health Ministry and the impact of the pandemic, resulting in slow progress.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!