Rishikumar Nadarajah outlines a solid trajectory for pharmaceutical growth
Demand for pharmaceuticals continues to grow steadily, driven by ageing populations, the increasing prevalence of chronic diseases and expanding access to healthcare worldwide. According to Managing Director of Celogen Lanka Rishikumar Nadarajah, Sri Lanka’s pharmaceutical sector, although relatively small, possesses untapped potential.
“At present, our participation in pharmaceutical exports is limited, primarily due to regulatory, scale and ecosystem constraints,” he explains. However, he notes that Sri Lanka has already taken meaningful steps forward.
“A key advantage lies in our ability to consistently maintain high quality within controlled and compliant environments,” Nadarajah states, elaborating that the country benefits from a well-educated workforce, a quality orientation and a stable operating environment compared to some regional peers.
Another important advantage is Sri Lanka’s potential positioning as a niche, quality focussed manufacturing base rather than a volume driven producer. “This enables the country to differentiate itself in specialised and quality sensitive segments instead of competing purely on cost,” he notes.
He adds: “There is a growing trend among buyers to diversify supply chains and reduce overreliance on a single country. In this context, Sri Lanka is well positioned to emerge as a reliable alternative sourcing destination that complements established markets such as India.”
However, Nadarajah cautions that several challenges remain, particularly the lack of scale, as Sri Lanka does not yet possess the manufacturing capacity or ecosystem depth seen in larger pharmaceutical producing nations.
He also points to the need for further development in policy and regulatory frameworks to align more closely with international expectations. “While meaningful progress has been made, movement towards globally recognised standards will be important in strengthening confidence,” he observes.
In addition, input costs, supply chain dependencies, taxes and duties across the value chain, and limited access to pharmaceutical ingredients continue to affect competitiveness. “Addressing these structural factors in a coordinated manner will be essential to unlocking the sector’s long-term growth potential,” he says.
Nadarajah emphasises that enhancing export competitiveness will require collaboration between stakeholders and policymakers. “Sustained investment in quality systems, regulatory compliance and international certifications is essential,” he stresses.
“Facilities that meet the prestigious EU Good Manufacturing Practice (EU GMP) and similar standards are critical enablers of export growth, and expanding this base will strengthen Sri Lanka’s positioning,” he adds. While these certifications are highly stringent, they should be viewed as strategic stepping stones that open access to regulated international markets.
Nadarajah also stresses that investment in innovation is equally important. “The sector must continuously evolve by upgrading technology, processes and technical expertise in order to remain competitive in a rapidly advancing landscape,” he says.
He highlights the need to improve operational efficiency and scale through better supply chain coordination and potential clustering of pharmaceutical activities.
Nadarajah further advocates a shift towards higher value manufacturing including complex generics, specialised dosage forms and contract manufacturing partnerships. “Companies that achieve international certifications are well positioned to drive this transition and establish benchmarks for the broader sector,” he avers.
From a policy perspective, he believes that consistent, transparent and forward-looking regulatory frameworks, supported by incentives for export oriented manufacturing, will be critical to enabling sustainable growth.
Accessing regulated markets such as the US and EU requires investment in quality systems, compliance and operational standards. “One of the main challenges is meeting stringent regulatory requirements including facility standards, documentation, validation processes and ongoing inspections. Maintaining these standards consistently over time is equally demanding,” Nadarajah explains.
He also notes that the cost and duration of product registration can be sizeable, requiring both financial resources and technical expertise. “Companies must demonstrate reliable supply chains and robust pharmacovigilance systems,” he adds, noting that competition is intense, particularly from established players in India and other countries that benefit from scale and long-standing regulatory relationships.
“For Sri Lanka, the path forward lies in expanding the internationally compliant facilities and building regulatory credibility,” says Nadarajah. Looking ahead, he believes that Sri Lanka has the opportunity to position itself as a credible, high quality pharmaceutical export hub over the next decade.
The expansion of EU GMP and internationally aligned facilities would broaden the country’s export footprint beyond its current base. “This would allow Sri Lanka to transition from a domestic focussed sector to a globally integrated one,” he observes.
At the same time, Nadarajah stresses the importance of strengthening the pharmaceutical manufacturing base with a target of meeting more than 80 percent of local demand through domestic production. “This would enhance self-sufficiency while creating a stronger and more resilient foundation for export led growth,” he says.
To achieve this vision, Nadarajah highlights the importance of continuing to deepen regulatory alignment with standards such as the Pharmaceutical Inspection Convention and Pharmaceutical Inspection Co-operation Scheme (PIC/S) while maintaining a stable policy environment that encourages long-term investment.
“In the short-term, support through mechanisms such as preferential pricing and buy back arrangements will be important in sustaining local manufacturers as they scale operations and transition into export markets,” he adds.
With the right combination of quality, compliance, policy support and sector collaboration, Nadarajah maintains that Sri Lanka can build a reputation as a trusted partner in the world pharmaceutical supply chain.
