Sri Lanka moving ahead with first pharma zone

Project scope expands :

Sri Lanka has begun preliminary work on country's first pharmaceutical manufacturing zone. Boosted by the government's buy back assurance on drugs made in the zone as well as the more than 10 percent rate of increase in country's annual pharmaceutical expenditure, the Industry and Commerce Ministry this week began mapping out the first steps in developing the 48 acre (19.4 Ha) land-plot slated for the project. The dedicated zone which will initially cater to the domestic market, will not only make pharmaceutical products but will also be expanded to produce medical equipment.

According to the Business Monitor International which analyses country risks across 175 countries, the projected expenditure for Lankan pharmaceuticals for 2011 is expected to increase by 15 percent (to US $ 444 million) in comparison to 2010. Such a rate of increase in annual pharma expenditure expense lately has resulted in a highly competitive market, with more than 300 products coming from various foreign pharmaceutical manufacturers (in addition to domestic manufacturers') and competing for the Sri Lankan consumer.

The proposed dedicated zone, which is less than 5 Km from Kurunegala city, is to be located at Rathgalla Grama Niladhari Division in the Kurunegala DS Division subject to the approval of the North Western Province Chief Minister. Upon approval from the Wayamba Provincial Council, the 48 acre state land plot identified here will be transferred to the Industry and Commerce Ministry to start groundwork immediately.

According to the Regional Industrial Development Director H.P. Jayananda, land plots for each successful project proposal would be allotted on the basis of a 50 year lease. "When selecting projects, priority will be given to projects that will invest Rs 100 million (US $ 906,000) or more" Jayananda said.

Detailing the zone, Jayananda said, "Since this is unlike any other industrial zone in Sri Lanka and it is set to manufacture lifesaving products, special preparations are required for which we are gearing now-a main component is related to maintaining a clean, non-polluted environment in the zone area. We have already requested for an Environment Impact Assessment from the Wayamba Environment Authority. The Industrial Technology Institute (ITI) has been selected by us to conduct the EIA. The available water quality and quantities in the area should be good standards, if not very good.

Therefore we will also be surveying the target area with the support of the National Water Supply and Drainage Board. Since we will be manufacturing crucial products to lives, the outdoor air quality needs to be always clean and related measures such as microbiological monitoring of air quality as required by international drugs manufacturing guidelines will be adhered to. In that, we need to make sure that no air pollution challenges exist here. Therefore, air quality tests will be done."

According to Jayananda, special infrastructure usually not required in other industrial zones will be put in place and these special infrastructure could form separate projects on their own.