Zydus Sunshine Lifesciences, a proposed joint venture between Zydus Lifesciences and Sunshine Healthcare, part of Sunshine Holdings PLC, has signed an agreement with Sri Lanka’s Board of Investment (BOI) to set up a pharmaceutical manufacturing facility in the BOI zone in Horana.

The project entails an investment of $20 million, with the facility spread across nearly four acres. Commercial operations are expected to commence in 2028, subject to project timelines and regulatory approvals, Zydus Lifesciences said on October 15.

The two companies had announced the formation of the joint venture in June.

In the first phase, the facility will manufacture oral solid dosage forms for the Sri Lankan market. The investment is expected to strengthen Zydus’ international presence while bolstering local pharmaceutical manufacturing capacity.

Local production is expected to enhance the resilience of Sri Lanka’s medicine supply chain and improve the availability of essential medicines, the company said.