- Country relies on imports to meet nearly 80% of pharmaceutical needs
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Sees lack of consistent policy and added pressure of expiring buyback agreements hindering growth
- Proposes a clear national roadmap for industry stability and growth
The Sri Lanka Pharmaceutical Manufacturers’ Association (SLPMA) made a compelling call to manufacture medicine in Sri Lanka as the country spends a staggering amount annually to import nearly 80% of its pharmaceutical need.
This heavy reliance on imports has created challenges for the country’s healthcare system, especially given the recent economic crisis and depleted foreign reserves.
Given the critical need to curb the outflow of foreign exchange the pharmaceutical association handed over SLPMA’s national policy proposal, an inspiring blueprint that outlined the rationale for developing Sri Lanka’s pharmaceutical manufacturing sector, a bold vision for its future, and a set of actionable recommendations.
The proposal envisions Sri Lanka producing 75% of its pharmaceutical needs locally, establishing the groundwork for a USD 1 billion export industry, and creating over 10,000 direct and indirect skilled jobs for pharmacists, scientists, engineers, and manufacturing professionals in next 5 to 10 years.
SLPMA’s proposal outlines a comprehensive national strategy built on five transformative pillars: strong policy support, enabling regulatory frameworks, industry commitment to quality and integrity, development of human talent, and investment in research and supporting industries.
The SLPMA proposes a multi-stakeholder task force comprising officials of ministries, regulatory bodies, development agencies, and industry representatives to set up a time-bound roadmap with measurable targets and coordinated policy support to implement the vision. The SLPMA made the national call at an industry-shaping event formally unveiling the theme ‘National Call to Produce Medicine in Sri Lanka – with Care, Trust, and Unity.’
The event coincided with the Association’s Annual General Meeting and sought to drive a unified, multi-stakeholder dialogue on transforming Sri Lanka’s pharmaceutical manufacturing sector into a self-reliant, export-ready thrust industry.
The Sri Lankan pharmaceutical market is valued at around USD 600 million, with 40% of demand serviced by government procurement and 60% through the private sector.
Following the Guaranteed Buyback Agreement introduced in 2015, Government procurement from local manufacturers rose sharply from a mere 5% to nearly 30%, triggering over USD 200 million in private-sector investments toward building modern manufacturing infrastructure. Although these gains demonstrate clear momentum in the government supplies, today, local manufacturers account for only 5% of private sector demand, highlighting enormous potential waiting to be unleashed through targeted policy support.
Despite progress in the Government sector, the industry faces mounting challenges due to lack of consistent policy support and added pressure of expiring buyback agreements. Setting up a clear national roadmap has become critical for industry stability and growth.
With rising global uncertainties and growing demand for accessible and affordable medicines, the timing of an initiative is also critical and consequential.
SLPMA commits to full accountability and transparency to ensure every Sri Lankan has access to safe, affordable medicines, positioning the country as a regional pharmaceutical manufacturing leader. SLPMA President, Nalin Kannangara said, “Today marks a landmark moment in our journey.
Local manufacturers have held firm and remained resilient over the years, despite many challenges. Yet, this industry has not unleashed its full potential.
With the right policy consistency and regulatory backing, we can build a true thrust industry — one that assures long-term pharmaceutical security for the nation.”
