Sri Lanka pharma market to grow 1.6% by 2024

Local firms will benefit from the government support to improve capacity and supply.

A report from Fitch Solutions has predicted that the pharmaceutical market in Sri Lanka will reach a value of $625m, which would involve a five-year compound annual growth rate (CAGR) of 1.6% by 2024. The report also forecasted the market to reach $710m by 2029, observing a 10-year CAGR of 2.2%.

Fitch Solutions attributed this growth mainly to the government’s goal of localising pharmaceutical production to meet half of local medicine demand by 2024. In line with the decision, the Sri Lankan government has created a new State Ministry dedicated to pharmaceutical manufacturing. It has also established a number of new manufacturing zones with the pharmaceutical sector being a key focus.

But the environment still remains challenging for foreign drugmakers, as the country offers limited commercial rewards, the report added. The government's emphasis on reducing imports thus poses a risk, particularly for low value treatments.

More complex pharmaceuticals, are unlikely to face a significant threat, given that Sri Lanka will not have the capabilities to manufacture such products in the medium term, according to Fitch Solutions.