Sri Lanka pharmaceutical manufacturers have the potential to tap the global pharmaceutical industry worth USD 1.8 trillion, Sri Lanka Pharmaceutical Manufacturers’ Association (SLPMA) President Dinesh Athapaththu told the 60th SLPMA Annual General Meeting (AGM) held in Colombo on July 27. He also reaffirmed SLPMA’s commitment towards advancing Sri Lanka’s pharmaceutical self-reliance and strengthening the country’s position as a credible pharmaceutical manufacturing hub held under the theme “Driving the National Call Forward.”
Athapaththu highlighted the need of transforming the industry’s long-term vision into tangible action by accelerating progress across five strategic pillars: enabling policy support, progressive regulation, industry commitment, human capital development, and investment in research and supporting industries.
While thanking the government for giving a 12.5% price increase for its products in 2026 after the lapse of three years, Athapaththu said, “The Pharmaceutical industry carries a unique responsibility because every product we manufacture has the potential to improve or save a life. As an industry, we should remain fully committed to ensuring the availability of safe, high quality, and affordable medicines for the people of Sri Lanka. Building a globally competitive pharmaceutical industry requires sustained investment in manufacturing capacity, product development, and export capabilities, supported by a clear and consistent national policy framework.”
“Across the region, strong partnerships between industry and policymakers have played a critical role in transforming pharmaceutical sectors. With the right long-term vision and collaborative approach, Sri Lanka can strengthen medicine security, conserve and generate valuable foreign exchange, create high value employment opportunities, retain our brightest talent, and establish itself as a credible pharmaceutical export industry.”
The Sri Lankan pharmaceutical market remains valued at approximately USD 600 million, with 40% serviced through government procurement and 60% through the private sector. Following the introduction of the Guaranteed Buyback Agreement in 2015, government procurement from local manufacturers increased significantly from 5% to nearly 30%, resulting in over USD 200 million in private-sector investments towards modern manufacturing infrastructure.
While this progress reflects the strong potential of local pharmaceutical manufacturing, local manufacturers currently account for only 5% of private sector demand, highlighting a significant domestic opportunity that can be unlocked through targeted policy support and continued industry development.
Despite the progress achieved, local pharmaceutical manufacturers continue to navigate operational challenges and policy uncertainties, including the expiry of Guaranteed Buyback Agreements, which have impacted investor confidence. A clear, long-term national roadmap remains essential to provide the stability required for continued investment in manufacturing capacity, product development, regulatory excellence, and export market expansion.
SLPMA recognises that the Guaranteed Buyback Scheme was introduced as a strategic catalyst to accelerate the growth of local pharmaceutical manufacturing, rather than as a permanent mechanism. The industry’s long-term objective is to build competitiveness through its own capabilities, expand its presence within the private market, and establish Sri Lanka as a credible pharmaceutical exporter.
