Pharmaceutical Zone Development
Arabokka, Hambantota
Arabokka
400 Acres
USD 5 Mn
Project Overview
The BOI, in order to support developing new industry verticals via import substitution and exports, is establishing a state-of-the-art pharmaceutical zone in Arabokka, Hambantota. This dedicated Pharmaceutical Manufacturing Zone plans to meet 40% of the domestic demand for pharmaceutical products by locally manufactured drugs while creating a pathway to export earnings as import substitution by 2025.
The Zone will be declared as a “Strategic Development Project” (SDP), and strategic pharmaceutical investments established within the proposed zone will be eligible for benefits under the SDP Act. This state–of–the–art zone will be designed to international standards and accreditations. This specifically tailored zone will create a conducive and liveable business environment for globally renowned pharmaceutical brands to bring the latest technological advances to manufacture pharmaceutical products.
Key Advantages
- Pre-approved zone: All environmental clearances to manufacture a full suite of pharmaceutical products and fast-tracked NMRA approvals.
- Strategic location: Proximity to both the Hambantota Port and Mattala Airport, with dedicated facilities at the airport to facilitate sea-air logistics.
- Common facilities: Wastewater treatment & sea outfall and common logistics facilities.
Project / Ownership Structure
Foreign Direct Investments (FDI), Domestic Private Investment
Project Incentives
- 5–10-year tax holiday for exports (duration depends on investment size, product type, patent rights, market orientation, domestic value addition, and quality).
- 0% duty & taxes on imported capital goods and raw materials.
- Exemptions for Import Substitution under VAT, PAL, CID, and CESS.
Other Incentives
- Dividends to non-resident entities are exempt from income and withholding taxes.
- Sri Lanka maintains double-tax treaties with 46 nations.
- 100% repatriation of capital and profits permitted.
- Access to skilled human capital with 92% literacy at 30% lower cost compared to the region.
Suggested Activities
- Software Development
- Research & Development
- Technology Incubators
- BPO, KPO
