First round of gap-filling funds to be released in early September as Sri Lanka partners with global firms to strengthen research, testing and manufacturing capacity:
The Government will begin disbursing funds to researchers whose projects are close to commercialisation within the next 45 days, the President’s Senior Advisor on Science and Technology and Co-Chairman of the Committee to Identify and Fertilise National Research Needs, Prof. Gomika Udugamasooriya said.
“In the 2025 Budget, the Government allocated Rs. 1 billion as a gap-filling fund to support innovations nearing commercialisation. Applications are reviewed quarterly, and we are currently processing those received in the first and second quarters of the year,” Prof. Udugamasooriya said.
In the first quarter alone, innovators requested funds amounting to Rs. 2.2 billion. The Government set up an open application and review system similar to the one used in the United States, ensuring each submission undergoes assessment by three independent reviewers.
“We also had to draft legal provisions to protect inventors, given that they disclose sensitive details about their innovations. Reviewing the technical aspects and commercial potential is crucial,” he said. The initial review process should conclude within the next one and a half months.
Simultaneously, discussions are ongoing with the Ministries of Finance and of Justice to improve the process, to protect researchers.
“This is an entirely new effort for Sri Lanka, involving significant groundwork and multi-sector collaboration,” Prof. Udugamasooriya said.
Accreditation
One aspect identified by the Government to support national research and innovation is accreditation.
This would also improve safety of consumers, he said. For a long time, there has been a need to enhance the capacity of laboratories with internationally recognised accreditation for testing purposes across many sectors in Sri Lanka, including health, agriculture, cosmetics and Ayurveda, as well as in the import and export fields.
“Accreditation is also vital for achieving our goal of doubling exports by 2030,” Prof. Udugamasooriya said.
To achieve international accreditation standards, Sri Lanka has secured a significant partnership with STEMedical, a US-based company founded by an internationally recognised stem cell expert, Prof. Hans Keirstead.
A Memorandum of Understanding (MoU) was signed between STEMedical and the Sri Lanka Institute of Biotechnology (SLIBTEC) recently, marking a $15 million investment to set up a state-of-the-art accredited laboratory.
“The new laboratory will function as a central hub, working closely with laboratories nationwide to guarantee quality across multiple sectors, including health, agriculture, cosmetics, ayurveda, and import-export fields,” Prof. Udugamasooriya said.
He said the project is expected to attract foreign investments and improve Sri Lanka’s capacity in testing and certification.
The Government is also carrying out initiatives to increase domestic production abilities. One of these initiatives is to manufacture a single superphosphate fertiliser that the country currently imports. Sri Lanka produces only rock phosphate, at the Eppawala mine. While beneficial for long-term crops, rock phosphate lacks the short-term effectiveness needed for crops such as paddy.
Superphosphate
“Today, we import substantial amounts of superphosphate fertiliser each year,” Prof. Udugamasooriya said. “A 50-kilogram bag costs around Rs. 15,000, but domestic production could slash the price significantly.”
He said that converting rock phosphate into superphosphate through reaction with sulfuric acid is a process already well-studied by local scientists. Launching domestic production would lead to significant annual savings, he said.
Several researchers and investors are eager to collaborate on this project, led by Lanka Phosphate Limited, a state-owned entity responsible for environmentally-safe phosphate excavation.
“After excavation, the phosphate will be supplied to investors who will process it into superphosphate. This initiative is a collaborative effort among the Ministries of Science, Industry, and Finance,” he said.
However, a key challenge has been highlighted — the absence of a sulfuric acid manufacturing plant in Sri Lanka. Setting up such a facility is crucial, and Paranthan Chemicals Company Limited could play a significant role in this regard. “We are actively connecting these initiatives to create a cohesive ecosystem for scientific and industrial advancement,” he said.
Lawsuit
Initially the Government aimed to commence phosphate fertiliser production by mid-2025, although a longstanding legal issue has caused delays.
“A lawsuit filed two decades ago to protect phosphate resources required certain institutions to provide specific reports, which have been submitted only recently. Nonetheless, we continue to make daily progress,” he said.
The next few years will reveal whether the Government’s belief that funding innovation, strengthening accreditation, and promoting strategic domestic industries will deliver the intended results. For now, stakeholders across research, industry, and the Government will be watching closely as the first round of funds is disbursed and the groundwork for new laboratory standards is set.
Much will depend on the implementation: whether partnerships translate to meaningful change, and whether long-standing bottlenecks, such as regulatory delays and institutional lethargy, can finally be resolved. How these initiatives unfold may ultimately determine the pace at which Sri Lankan science and industry can move towards their broader goals.
