Morison eyes export drive as local pharma manufacturing reaches critical mass

By Nishel Fernando

Morison Limited, the pharmaceutical manufacturing arm of Hemas Holdings PLC, is aggressively laying the groundwork for a major export drive after reaching a critical mass in the domestic healthcare sector. 

According to the Hemas Holdings PLC Annual Report 2025/26, the company is currently undergoing the rigorous EU-GMP certification process, a strategic outward pivot designed to position the homegrown manufacturer as a highly competitive player in regional and global pharmaceutical supply chains.

Outlining this trajectory, Group Chief Executive Officer Ashish Chandra stated that Morison is actively pursuing export opportunities, with the ongoing EU-GMP certification process serving as a significant step to open access to international markets and further elevate the brand on the global stage.

This push toward international markets is anchored by formidable infrastructure and expanding manufacturing capabilities. Operating out of two advanced factories in Homagama and Mutwal, Morison has scaled its production capacity to 6.8 billion tablets and 2.4 million litres of liquid medications per annum. The strategy has yielded significant dividends, with Morison recording a remarkable 18.6 percent volume growth during the 2025/26 financial year, securing its rank as the second-largest player by volume in Sri Lanka’s private pharmaceutical market. 

Central to this domestic dominance is a targeted focus on novel therapies for non-communicable diseases, notably offering affordable alternatives such as its flagship diabetes medication, EmpaMor, which alone generated estimated annual savings of over Rs. 300 million for local patients.

The urgency to transcend the domestic market is heightened by severe macroeconomic pressures currently squeezing local pharmaceutical margins. The local operating environment remains heavily constrained by national price controls, prompting local producers to aggressively lobby for relief. 

In late March 2026, National Medicines Regulatory Authority (NMRA) Chairman Specialist Dr. Ananda Wijewickrama confirmed that pharmaceutical companies formally wrote to Health Ministry Secretary Specialist Dr. Anil Jasinghe, requesting a price hike of at least 7 percent for 60 price-controlled medicines. Manufacturers argue that surging global production costs, a weakening local currency, and elevated shipping and insurance charges linked to the ongoing Middle East conflict have made current price points unsustainable.

Securing the globally recognised EU-GMP certification will serve as a critical inflection point for the manufacturer, unlocking immediate access to highly regulated international markets and mitigating these local macroeconomic vulnerabilities. This evolution aligns with a broader corporate restructuring that began when Hemas Holdings took Morison Limited, delisting the firm from the Colombo Stock Exchange in 2020. The delisting provided the strategic freedom to absorb heavy, long-term capital expenditures - such as the massive investment in the Homagama plant - without the immediate pressures of quarterly public market expectations.