Govt. announces 600-acre addition to H’tota pharma zone

• Investors to receive land plots under first phase in June 

The government has announced a 600-acre addition to the dedicated Pharmaceutical Manufacturing Zone located in the Arabokka estate in Hambantota, under phase two of the project, while the investors are set to secure the land plots under the 400-acre first phase of the project in June.

“We have already identified a 1000-acre area in Arabokka in Hambantota for the project. Under the first phase of the project, an area extent of 400 acres has already been identified and developed,” Aviation and Export Zones Development State Minister D.V. Chanaka announced at the first progress review meeting of the dedicated Pharmaceutical Manufacturing Zone, at the Aviation and Export Zones Development State Ministry, recently. 
He expressed confidence on handing over the land plots to the investors under the first stage of the project in June, with the land acquisition and initial construction activities have already been commenced.  

Further, Chanaka also advised the Board of Investment (BOI) to expedite the project by undertaking infrastructure development and construction of manufacturing plants simultaneously. 

The government aims to meet 40 percent of the country’s pharmaceutical requirement with the expected production in the zone while saving estimated US $ 1 billion foreign exchange outflows on pharmaceutical imports per annum by 2025. Further, Chanaka also announced plans to explore emerging export opportunities in South East Asia and the African continent, driven by the rising demand for pharmaceutical products.

In January this year, the Finance Ministry issued a gazette notification announcing the tax concessions for the 400-acre dedicated Pharmaceutical Manufacturing Zone, under the Strategic Development Project Act.

According to the Aviation and Export Zones Development State Ministry, Sri Lanka is the largest importer of pharmaceutical products in the South Asian region, at a cost of Rs.130 billion per annum, accounting for 85 percent of the domestic requirement.