1 Industries based on Microorganisms, their processes and products Microbial technology/ Industrial Biotechnology In Sri Lanka Professor S. Widanapathirana.

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Industries based on Microorganisms, their processes and Industries based on Microorganisms, their processes and products products

Microbial technology Microbial technology// Industrial Biotechnology Industrial Biotechnology In Sri LankaIn Sri Lanka

Professor S. WidanapathiranaProfessor S. WidanapathiranaSenior professor of MicrobiologySenior professor of Microbiology

University of Kelaniya , 2005University of Kelaniya , 2005

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IntroductionIntroduction The field of industrial biotechnology based on microbial processes The field of industrial biotechnology based on microbial processes

microorganisms, their products (Microbial technology) has moved very microorganisms, their products (Microbial technology) has moved very fast all over the world during the last 03 decades. Rapid achievements fast all over the world during the last 03 decades. Rapid achievements have been made in the application of recombinant DNA technology in have been made in the application of recombinant DNA technology in microbial technology. microbial technology.

Biotechnological applications based on microbial technology have Biotechnological applications based on microbial technology have great potential for developing countries in improving their health, food great potential for developing countries in improving their health, food production environmental management, in agriculture and creating production environmental management, in agriculture and creating new jobs.new jobs.

In Sri Lanka there are few industries based on microbial technology . In Sri Lanka there are few industries based on microbial technology . Basically the following categories are recognized. The details given for Basically the following categories are recognized. The details given for each is not based on a large scale survey. each is not based on a large scale survey.

The objective of this paper is to identify the type of industries presently The objective of this paper is to identify the type of industries presently available in Sri Lanka, and the need for further development available in Sri Lanka, and the need for further development (justification for further development) and limitations of expansion.(justification for further development) and limitations of expansion.

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Industries based on microorganisms their Industries based on microorganisms their processes and products.processes and products.

Fermentation BiotechnologyFermentation Biotechnology Dairy industriesDairy industries

Curd / YoghurtCurd / Yoghurt ButterButter CheeseCheese ButterButter

Alcohol/ based industriesAlcohol/ based industries BeerBeer WineWine ToddyToddy Ethyl alcoholEthyl alcohol VinegarVinegar Arrack and spiritsArrack and spirits

Environmental BiotechnologyEnvironmental Biotechnology Water and waste water treatment industriesWater and waste water treatment industries Solid waste management industries (re-cycling waste), composting biogasSolid waste management industries (re-cycling waste), composting biogas BioremediationBioremediation

Agricultural BiotechnologyAgricultural Biotechnology BiofertilizersBiofertilizers BiopesticidesBiopesticides CompostingComposting

Pharmaceuticals / health care productsPharmaceuticals / health care products AntibioticsAntibiotics SteroidsSteroids VaccinesVaccines ProbioticsProbiotics Food supplements Food supplements Molecular DiagnosticsMolecular Diagnostics

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Fermentation BiotechnologyFermentation Biotechnology

(A). Dairy Industry(A). Dairy IndustryIntroduction and present Industries in Sri LankaIntroduction and present Industries in Sri Lanka

In Sri Lanka. dairy biotechnology is confined to In Sri Lanka. dairy biotechnology is confined to cottage industries, small and medium scale cottage industries, small and medium scale industries and large scale multinational industries. industries and large scale multinational industries. Generally production of curd is a cottage Generally production of curd is a cottage industry , but large scale companies such as industry , but large scale companies such as Kothmale Dairy industry also produces curd to the Kothmale Dairy industry also produces curd to the retail market. Yogurt industry also operates in retail market. Yogurt industry also operates in similar lines Some cooperative societies also similar lines Some cooperative societies also produce yoghurt and release it to the retail marketproduce yoghurt and release it to the retail market

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Market Leaders of Sri Lankan Dairy IndustryMarket Leaders of Sri Lankan Dairy Industry

Rich life LimitedRich life Limited

Pirivena Road, Molligoda, Wadduwa Pirivena Road, Molligoda, Wadduwa www.richlifedairvproduct.comwww.richlifedairvproduct.com

Fresh Milk (Tetra Packs & Bottles)Fresh Milk (Tetra Packs & Bottles) Yogurt. Drinking YogurtYogurt. Drinking Yogurt CurdCurd Cow GheeCow Ghee Ice cream Ice cream

New Zealand Milk Lanka (Pvt) LtdNew Zealand Milk Lanka (Pvt) Ltd

No 100, Delgoda Road, BiyagamaNo 100, Delgoda Road, Biyagamawww. Newzealandmilk. comwww. Newzealandmilk. com

New Dale MilkNew Dale Milk New Dale set yogurtNew Dale set yogurt New Dale MilkNew Dale Milk Anchor milk powder (Full cream & non fat)Anchor milk powder (Full cream & non fat) Anelene (High Calcium milk powder)Anelene (High Calcium milk powder) Ratthi milk powder (Full cream)Ratthi milk powder (Full cream) AnchorAnchor

Milco(Pvt) LtdMilco(Pvt) Ltd

No. 45. Nawala Road, Narahenpita, Colombo 05No. 45. Nawala Road, Narahenpita, Colombo 05Telephone : 01-2578774 - 6Telephone : 01-2578774 - 6

Highland Milk Powder Highland Milk Powder CheeseCheese ButterButter Ice creamIce cream Milk Packets & BottlesMilk Packets & Bottles yoghurtyoghurt

Kothmale Milk ProductionKothmale Milk Production20, Sisumana Mawatha, New town Mullariyawa.20, Sisumana Mawatha, New town Mullariyawa.

Milk packets, Milk packets, Ice Cream, Ice Cream, Cheese Cheese

Ceylon Cold StoresCeylon Cold StoresCeylon Cold Stores, Kaduwela, Ranala,Ceylon Cold Stores, Kaduwela, Ranala,

Telephone -01-2415438Telephone -01-2415438

Ice CreamIce Cream

Nestle Lanka LtdNestle Lanka Ltd

Nestle Lanka Ltd 440T.B.Jaya Mawatha ,Colombo 10.Nestle Lanka Ltd 440T.B.Jaya Mawatha ,Colombo 10.

Milk MaidMilk MaidNespray milk powderNespray milk powderNido Milk powderNido Milk powder

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SWOT Analysis for Sri Lankan dairy industrySWOT Analysis for Sri Lankan dairy industry

StrengthsStrengths

Dairy products have a high demand in the market Dairy products have a high demand in the market from the ancient days.from the ancient days.

High nutritional value of dairy products leads to High nutritional value of dairy products leads to popularization among people.popularization among people.

Well-established brand name can win customers Well-established brand name can win customers easily.easily.

Today the customers are very well focused on Today the customers are very well focused on 'Quality' of a product. Availability of cheap labor.'Quality' of a product. Availability of cheap labor.

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WeaknessesWeaknesses Lack of usage of modern machinery.Lack of usage of modern machinery. Most of the processes are carried out manually; it can lead to contamination Most of the processes are carried out manually; it can lead to contamination

andandwastage.wastage.

Lack of Research and development activities. Even market leaders of Sri Lack of Research and development activities. Even market leaders of Sri Lankan Market are not involved in research work.Lankan Market are not involved in research work.

E.g. In Sri Lankan market probiotic applications are not very common.E.g. In Sri Lankan market probiotic applications are not very common. Gene technology and its applications are rarely applied in Sri Lanka.Gene technology and its applications are rarely applied in Sri Lanka. Waste treatments are not carried out in an efficient manner.Waste treatments are not carried out in an efficient manner. Most of the dairy product containers are non degradable and non recyclable. It Most of the dairy product containers are non degradable and non recyclable. It

is a root cause for environmental pollutionis a root cause for environmental pollution JIT system cannot be carried out in a developing country like Sri Lanka, due toJIT system cannot be carried out in a developing country like Sri Lanka, due to

lack of infrastructure facilities.lack of infrastructure facilities. Some times manufacturing processing is carried out at under-capacity. Due toSome times manufacturing processing is carried out at under-capacity. Due to

interference caused by raw material supply and high machine lead-time.interference caused by raw material supply and high machine lead-time.

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OpportunitiesOpportunities Manual process should be-eliminated and modern Manual process should be-eliminated and modern

technological equipment can be used. It eliminates technological equipment can be used. It eliminates contamination and enhances the quality of the product.contamination and enhances the quality of the product.

Employing knowledgeable people can lead to function Employing knowledgeable people can lead to function R&D in line with modern technology, like genetic R&D in line with modern technology, like genetic engineering.engineering.

Quality assurance techniques can be well developed to Quality assurance techniques can be well developed to ensure a well-developed product.ensure a well-developed product.

ThreatsThreats Entrance of new competitors to the market.Entrance of new competitors to the market. If waste products are not well treated environmental If waste products are not well treated environmental

friendly organizations can rise against the industryfriendly organizations can rise against the industry..

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(b) Alcohol / based industries Introduction and present status in (b) Alcohol / based industries Introduction and present status in Sri Lanka.Sri Lanka.

There are a large number of alcohol / based industries which are mainly run by private There are a large number of alcohol / based industries which are mainly run by private individuals and private companies. Beer, toddy, vinegar and arrack / spirits industries are individuals and private companies. Beer, toddy, vinegar and arrack / spirits industries are fairly well established, but the Sri Lankan contribution varies, due to imports. fairly well established, but the Sri Lankan contribution varies, due to imports.

The raw materials needed for Beer industry are imported where as the other industries The raw materials needed for Beer industry are imported where as the other industries rely on local materials such as sugar cane molasses, coconut toddy etc.. There is no wide rely on local materials such as sugar cane molasses, coconut toddy etc.. There is no wide scale wine industry in Sri Lanka, it is mainly a cottage industry, which uses coconut water, scale wine industry in Sri Lanka, it is mainly a cottage industry, which uses coconut water, fruit juices as raw materials.fruit juices as raw materials.

The alcohol industry is mainly runThe alcohol industry is mainly run by, Pelawatta sugar company at Monaragala and by, Pelawatta sugar company at Monaragala and Sevenagala sugar company. According to a reasonable estimate Pelawatta supplies Sevenagala sugar company. According to a reasonable estimate Pelawatta supplies about 10 millions liters and Sevanagala supplies about 03 millions liters of alcohol to the about 10 millions liters and Sevanagala supplies about 03 millions liters of alcohol to the local market annually. In addition distilleries corporation imports alcohol, for blending into local market annually. In addition distilleries corporation imports alcohol, for blending into potable spirits.potable spirits.

It is estimated that the local industries produce only about 60% -70% of the alcohol need It is estimated that the local industries produce only about 60% -70% of the alcohol need of the country and that there is room for further improvement.of the country and that there is room for further improvement.

Currently sugar industry produces excess of molasses, which is the main source of for Currently sugar industry produces excess of molasses, which is the main source of for fermentation production of alcohol. The technology involved is batch fermentation and fermentation production of alcohol. The technology involved is batch fermentation and distillation. Expansion of sugar industry, increasing facilities for molasses storage, new distillation. Expansion of sugar industry, increasing facilities for molasses storage, new technology for improved fermentation will assist the industry, to achieve self sufficiency in technology for improved fermentation will assist the industry, to achieve self sufficiency in alcohol, and further development of industries based an alcohol.alcohol, and further development of industries based an alcohol.

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(B) Environmental Biotechnology (Environmental (B) Environmental Biotechnology (Environmental Applications)Applications)

Introduction and present Industries in Sri LankaIntroduction and present Industries in Sri Lanka

As a developing country effective and efficient waste management is emphasized by As a developing country effective and efficient waste management is emphasized by government authorities. Legislation forces industries to manage their wastes. government authorities. Legislation forces industries to manage their wastes.

Most of municipal wastes are dumped in to law value lands without proper management. Most of municipal wastes are dumped in to law value lands without proper management. Most of industries are build up with there own waste treatment plans due to lack of proper Most of industries are build up with there own waste treatment plans due to lack of proper

central waste treatment systems within the country.central waste treatment systems within the country. In Sri Lanka Central Environmental Authority (CEA) plays a major role in protecting the In Sri Lanka Central Environmental Authority (CEA) plays a major role in protecting the

environment. The CEA, the regulatory body for environment was established in 1980. In environment. The CEA, the regulatory body for environment was established in 1980. In the recent past, the need for a separate ministry for environment was highlighted and as a the recent past, the need for a separate ministry for environment was highlighted and as a result the Ministry of Forestry and Environment was established in 1997. result the Ministry of Forestry and Environment was established in 1997.

Sri Lanka Standards Institution (SLSI), the national standards body has formulated a Sri Lanka Standards Institution (SLSI), the national standards body has formulated a number of standards relating to environmental protection such as tolerance limits for number of standards relating to environmental protection such as tolerance limits for effluent discharge from various industries.effluent discharge from various industries.

The ISO 14000 series, in broad sense, is defined as a systematic approach to meeting The ISO 14000 series, in broad sense, is defined as a systematic approach to meeting environmental obligations. The ISO 14000 series includes six main topical areas. ISO environmental obligations. The ISO 14000 series includes six main topical areas. ISO 14001 standards does not set requirements for any environmental aspect such as 14001 standards does not set requirements for any environmental aspect such as emissions or discharges. Instead organizations established their own targets of control emissions or discharges. Instead organizations established their own targets of control based on current performance data or to comply with regulatory requirement.based on current performance data or to comply with regulatory requirement.

EMS (Environmental Management Systems) certification is voluntary certificationEMS (Environmental Management Systems) certification is voluntary certification scheme of SLSI to support industry to comply with the requirements of the scheme of SLSI to support industry to comply with the requirements of the

ISO14001standard and to demonstrate company's commitment to environmental ISO14001standard and to demonstrate company's commitment to environmental protection. More than thirty qualified EMS auditors support the SLSI EMS certification protection. More than thirty qualified EMS auditors support the SLSI EMS certification scheme.scheme.

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In the international field the Bureau of Ceylon Standards represent Sri In the international field the Bureau of Ceylon Standards represent Sri Lanka in the Lanka in the InternationalInternational Organization for Standardization (ISO) and Organization for Standardization (ISO) and will participate in such field of standardization. will participate in such field of standardization.

Many SLS standards for waste discharging have been established.Many SLS standards for waste discharging have been established.

SLS effluents industrial tolerance Limits (SLS year book 1999)SLS effluents industrial tolerance Limits (SLS year book 1999) SLS 652:1984 Tolerance limits for industrial effluents discharged in to SLS 652:1984 Tolerance limits for industrial effluents discharged in to

inland surface waters. Prescribes tolerance limits and methods of sampling inland surface waters. Prescribes tolerance limits and methods of sampling and test for industrial effluents discharge in to inland surface waters. and test for industrial effluents discharge in to inland surface waters.

SLS 721:1985 Tolerance limits for industrial and domestic effluents SLS 721:1985 Tolerance limits for industrial and domestic effluents discharged into marine costal areas. Prescribed tolerance limits and discharged into marine costal areas. Prescribed tolerance limits and methods of sampling and test for industrial and domestic effluents methods of sampling and test for industrial and domestic effluents discharged in to marine costal areas. discharged in to marine costal areas.

The major problem caused for environmental pollution is the increase The major problem caused for environmental pollution is the increase in dumping of wastes due to increasing population and in dumping of wastes due to increasing population and Industrialization. The Safety of drinking water is also questioned with Industrialization. The Safety of drinking water is also questioned with increasing environmental pollution.increasing environmental pollution.

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In the industries in Sri LankaIn the industries in Sri Lanka

Liquid waste managementLiquid waste management Due to much concern in water and waste water as well as solid waste Due to much concern in water and waste water as well as solid waste

management, many consultant services and industries are established management, many consultant services and industries are established in private sector now in Sri Lanka. These companies supply equipment in private sector now in Sri Lanka. These companies supply equipment to wastewater treatment plants, act as consultants, designers etc.to wastewater treatment plants, act as consultants, designers etc.

Biological treatment is one of the operational units in a wastewater Biological treatment is one of the operational units in a wastewater treatment facility. Therefore some companies import bio-formulations to treatment facility. Therefore some companies import bio-formulations to carry out bioremediation processes.carry out bioremediation processes.

Solid waste managementSolid waste management Much of urban solid waste composed of glass, metal and plastic but the Much of urban solid waste composed of glass, metal and plastic but the

remainder is decomposable organic wastes such as households and remainder is decomposable organic wastes such as households and industrial garbage. industrial garbage.

In highly populated urban centers and areas of large scale agricultural In highly populated urban centers and areas of large scale agricultural production, the disposal of massive amount of organic wastes has production, the disposal of massive amount of organic wastes has become a problembecome a problem

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There are several options for dealing with solid waste problem. There are several options for dealing with solid waste problem. Processes available for solid waste management are;Processes available for solid waste management are;

1.1. Physical processPhysical process PelletisationPelletisation

2.2. Biochemical / Microbial process Biochemical / Microbial process Aerobic compostingAerobic composting Anaerobic digestionAnaerobic digestion VermicultureVermiculture

3.3. Thermal processThermal process IncinerationIncineration GasificationGasification

Most effective solid waste management methods depends on microbial Most effective solid waste management methods depends on microbial technology;technology;

Anaerobic (Sanitary) Land FillingAnaerobic (Sanitary) Land Filling CompostingComposting

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Sanitary Land FillingSanitary Land Filling The land fill technology can very effectively be The land fill technology can very effectively be

utilized for disposing municipal solid waste that utilized for disposing municipal solid waste that has relatively a high organic content. In this case, has relatively a high organic content. In this case, solid waste are deposited in low lying, low value solid waste are deposited in low lying, low value sites, compressed and covered by a layer of soil. sites, compressed and covered by a layer of soil. Thus the land fill sites act as bioreactors.Thus the land fill sites act as bioreactors.

compostingcomposting Composting is an aerobic, microbially driven Composting is an aerobic, microbially driven

process that converts solid organic wastes in to a process that converts solid organic wastes in to a stable humus-like material that has been stable humus-like material that has been considerably reduced in bulk and can be safely considerably reduced in bulk and can be safely returned to the environment as fertilizers.returned to the environment as fertilizers.

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Widely known consultant services and industries are Widely known consultant services and industries are mentioned below.mentioned below.

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Industry associated Water/Waste water Treatment PlantsIndustry associated Water/Waste water Treatment Plants

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What are the needs in Sri Lanka?What are the needs in Sri Lanka?

As a developing country, with increasing urbanization and industrialization, the As a developing country, with increasing urbanization and industrialization, the environmental management will be a profitable investment in Sri Lanka. environmental management will be a profitable investment in Sri Lanka. Therefore study of environmental Biotechnology will be very helpful in future Therefore study of environmental Biotechnology will be very helpful in future aspect as industries will seek for qualified persons to recruit.aspect as industries will seek for qualified persons to recruit.

To study the involvement of microbial biotechnology in water purification.To study the involvement of microbial biotechnology in water purification. To study the involvement of microbial biotechnology in waste water and solidTo study the involvement of microbial biotechnology in waste water and solid

waste management.waste management. To study the recent applications of microbial technology in Sri Lanka in To study the recent applications of microbial technology in Sri Lanka in

relation to environment protection. relation to environment protection. To identify the global requirements on environment management with To identify the global requirements on environment management with

microbial biotechnology.microbial biotechnology. To identify potential development in the field of environmental biotechnologyTo identify potential development in the field of environmental biotechnology One of the new trends in environmental technology is to reduce waste production One of the new trends in environmental technology is to reduce waste production (waste minimization programmes and eco design for products) from various (waste minimization programmes and eco design for products) from various processes. In Sri Lanka The National cleaner production center provides training processes. In Sri Lanka The National cleaner production center provides training and advice on these aspects .and advice on these aspects .

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SWOT Analysis for Environmental ManagementSWOT Analysis for Environmental Management

StrengthsStrengths

New standards are introduced to the industries.New standards are introduced to the industries. Government also provides rules and regulations with regard to Government also provides rules and regulations with regard to

environmentalenvironmentalprotection for registration of the industry.protection for registration of the industry.

A favorable condition for the microbiological process is given by A favorable condition for the microbiological process is given by naturalnaturalenvironmental conditions.environmental conditions.

Availability of knowledge knowledgeable work force.Availability of knowledge knowledgeable work force. Education system aims to produce environmental friendly new Education system aims to produce environmental friendly new

generation.generation. Cultures which are use for biological process can be obtained from Cultures which are use for biological process can be obtained from

natural sources.natural sources. No involvement of addition of synthetic chemicals/nutrients which are No involvement of addition of synthetic chemicals/nutrients which are

possiblepossiblesource of environmental contamination.source of environmental contamination.

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WeaknessesWeaknessesAt present most of the projects are operate at lower efficiency level due to the following At present most of the projects are operate at lower efficiency level due to the following factorsfactors Poor planning and coordination among responsible organization.Poor planning and coordination among responsible organization. Use of inappropriate technology.Use of inappropriate technology. Law quality of output.Law quality of output. Poor management and collection method.Poor management and collection method. Lack of property qualified persons at local authority.Lack of property qualified persons at local authority. No waste analysis has been done before selecting the technology.No waste analysis has been done before selecting the technology.

OpportunitiesOpportunitiesThe following factors will enhance the industries objectives towards waste management.The following factors will enhance the industries objectives towards waste management. Enhance the industrial process by legislation.(Legislation awareness)Enhance the industrial process by legislation.(Legislation awareness) Industries are supported by government.Industries are supported by government. Development of environmental conscious societies.Development of environmental conscious societies. Treatments results in byproducts which are economically important. E.g. Bio-gasTreatments results in byproducts which are economically important. E.g. Bio-gas

formation by waste digestionformation by waste digestion

ThreatsThreats

Limited financing in developing countries. This includes costs of collection,Limited financing in developing countries. This includes costs of collection,storage, processing and removal of wastes.storage, processing and removal of wastes.

Biological process could be interfered by non-digestible materials, radioactiveBiological process could be interfered by non-digestible materials, radioactivecompounds, toxic compounds, high concentration of organic matter etc.compounds, toxic compounds, high concentration of organic matter etc.

An additional cost has to be spent to maintain the process.An additional cost has to be spent to maintain the process. Rapid increase of urbanization and industrialization. (The rate of wasteRapid increase of urbanization and industrialization. (The rate of waste

production is much higher than the rate of biodegradation.)production is much higher than the rate of biodegradation.)

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(C) Agricultural Biotechnology (Applications in (C) Agricultural Biotechnology (Applications in microbial technology in agriculture)microbial technology in agriculture)

Introduction and present Industries in Sri LankaIntroduction and present Industries in Sri Lanka

Modern agriculture in heavily dependant on fossil fuel based inputs such as inorganic Modern agriculture in heavily dependant on fossil fuel based inputs such as inorganic fertilizer, pesticides and herbicides. Such agricultural practices have caused problems of pollution, fertilizer, pesticides and herbicides. Such agricultural practices have caused problems of pollution, deturiation of soil structure and properties.deturiation of soil structure and properties.Agricultural biotechnology based on microbial process offers an alternative practices of using Agricultural biotechnology based on microbial process offers an alternative practices of using biofertilizer, biopesticides, organic fertilizer produced by composting. These products are already biofertilizer, biopesticides, organic fertilizer produced by composting. These products are already available commercially in many countries.available commercially in many countries.

Biofertilizers are natural fertilizers which are microbial inoculants of Bacteria, algae, fungi alone or in Biofertilizers are natural fertilizers which are microbial inoculants of Bacteria, algae, fungi alone or in combinations. They enhance the availability of nutrients in soil and are environmentally friendly. combinations. They enhance the availability of nutrients in soil and are environmentally friendly. Biofertilizers work in nature (soil) byBiofertilizers work in nature (soil) by

a.a. Biological Nitrogen fixationBiological Nitrogen fixationb.b. Phosphate solubilizationPhosphate solubilization

Biopesticides are products based on living biological entities which are prone toBiopesticides are products based on living biological entities which are prone todecay in soil. They are classified in to Botanical pesticides and microbialdecay in soil. They are classified in to Botanical pesticides and microbialpesticides.pesticides.

Compost degraders (biodegraders) contain a cocktail of living degradativeCompost degraders (biodegraders) contain a cocktail of living degradativemicroorganisms which rapidly degrade wastes in to organic fertilizer microorganisms which rapidly degrade wastes in to organic fertilizer

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Present industries in Sri LankaPresent industries in Sri Lanka

There is no local industry which produces any of them commercially. But certain institutions There is no local industry which produces any of them commercially. But certain institutions individuals, organizations appear to either produce some of them in smaller scale or import them and individuals, organizations appear to either produce some of them in smaller scale or import them and distribute true a limited local network. However such products are widely used and are not available in distribute true a limited local network. However such products are widely used and are not available in large scalelarge scale

Organizations engaged in Biofertilizer industry in Sri Lanka and their contact persons:Organizations engaged in Biofertilizer industry in Sri Lanka and their contact persons:

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Needs in Sri LankaNeeds in Sri Lanka In a developing country like Sri Lanka local production of In a developing country like Sri Lanka local production of

fertilizer is still not sufficient to meet the demand in fertilizer is still not sufficient to meet the demand in agriculture. Sri Lanka also uses a wide variety of agriculture. Sri Lanka also uses a wide variety of chemical pesticides. In agriculture both fertilizers and chemical pesticides. In agriculture both fertilizers and chemical pesticides are imported. In addition the use of chemical pesticides are imported. In addition the use of chemical fertilizers and pesticides have caused many chemical fertilizers and pesticides have caused many problems of environmental pollution. And degradation of problems of environmental pollution. And degradation of soil. It is common knowledge that Sri Lanka spends a soil. It is common knowledge that Sri Lanka spends a large sum of many importing chemical fertilizers and large sum of many importing chemical fertilizers and pesticides and development of biofertilizer and pesticide pesticides and development of biofertilizer and pesticide will be a great asset to the Agricultural sector.will be a great asset to the Agricultural sector.

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(D) Pharmaceutical and Healthcare industry(D) Pharmaceutical and Healthcare industry

Introduction and present Industries in Sri LankaIntroduction and present Industries in Sri LankaPharmaceutical products' are compounds that are used to Pharmaceutical products' are compounds that are used to

cure diseases and to maintain sustainable health in cure diseases and to maintain sustainable health in humans. Pharmaceutical products are of two types, humans. Pharmaceutical products are of two types, chemically synthesized Pharmaceuticals and biologically chemically synthesized Pharmaceuticals and biologically synthesized Pharmaceuticals. Most of the drugs in the synthesized Pharmaceuticals. Most of the drugs in the market are produced by chemical synthesis and some market are produced by chemical synthesis and some produced by microbial processes generally known produced by microbial processes generally known biopharmaceuticals. They are simply medically useful biopharmaceuticals. They are simply medically useful drugs whose manufacture involves microorganisms or drugs whose manufacture involves microorganisms or substances that living organisms produced. These include substances that living organisms produced. These include products derived by fermentation technology and new products derived by fermentation technology and new technology like DNA recombinant technology, monoclonaltechnology like DNA recombinant technology, monoclonalantibodies, diagnostics and Vaccines etc...antibodies, diagnostics and Vaccines etc...

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Current Status in Sri LankaCurrent Status in Sri Lanka

There are many pharmaceutical based companies in Sri Lanka. Most of themThere are many pharmaceutical based companies in Sri Lanka. Most of themimport drugs and pharmaceutical products from multinational drug companiesimport drugs and pharmaceutical products from multinational drug companiesworldwide and distribute throughout the country via their island wide distributionworldwide and distribute throughout the country via their island wide distributionnetwork.network.

A limited number of companies in Sri Lanka manufacture pharmaceutical drugsA limited number of companies in Sri Lanka manufacture pharmaceutical drugsand healthcare products and that too are confined to a few. and healthcare products and that too are confined to a few.

• It appears that it is cheaper for a country like Sri Lanka to import and distributedrugs rather than manufacture them locally. The lack of raw materials, machineryand the experts as well as trained personnel would automatically require obtainingthem from abroad. This process would cost an enormous amount of money. Toadd to this there is still the lack of facilities to optimize and scale up theproduction,

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SWOT analysis of pharmaceutical industrySWOT analysis of pharmaceutical industryStrengthsStrengths Good market- both government sector & private sector buyers and suppliersGood market- both government sector & private sector buyers and suppliers

involved.involved. With the improvement of living, the quality conscious consumers pay more forWith the improvement of living, the quality conscious consumers pay more for

good quality productsgood quality products The development of private hospitals increases the level of demand ofThe development of private hospitals increases the level of demand of

pharmaceutical products in commercial scale.pharmaceutical products in commercial scale. The current government policy of more private sector involvement in medicalThe current government policy of more private sector involvement in medical

industry welcomes more suppliers to the market at competitive prices.industry welcomes more suppliers to the market at competitive prices.

WeaknessesWeaknesses Insufficient capital for investment in the industry.Insufficient capital for investment in the industry. The technical know-how is not sufficient.The technical know-how is not sufficient. The low level of research and development in the industry.The low level of research and development in the industry. The Sri Lankan market is very small for a large-scale industry as Pharmaceuticals.The Sri Lankan market is very small for a large-scale industry as Pharmaceuticals. Popular brand names always get prominence over quality medium scalePopular brand names always get prominence over quality medium scale

producers.producers. Higher education institutes not interested in this field of training.Higher education institutes not interested in this field of training. Copyrights and patents further reduce the scope of industry.Copyrights and patents further reduce the scope of industry. There is no coordinating body in the region to enhance the exchange ofThere is no coordinating body in the region to enhance the exchange of

knowledge and technology and to act in synergy) knowledge and technology and to act in synergy) There is no trend to encouragement for knowledge based industries.There is no trend to encouragement for knowledge based industries.

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OpportunitiesOpportunities The recognized brands do not have enough capacity to cater the demand.The recognized brands do not have enough capacity to cater the demand.

Therefore they outsource with the expansion. This is an opportunity for goodTherefore they outsource with the expansion. This is an opportunity for goodquality producers in medium scale.quality producers in medium scale.

The investors have identified the industry as more stable thus willing to invest.The investors have identified the industry as more stable thus willing to invest. The people being more health conscious spend more on healthcare andThe people being more health conscious spend more on healthcare and

pharmaceutical products.pharmaceutical products. Government sector meets 50% of its demand by imports which can be Government sector meets 50% of its demand by imports which can be

replaced byreplaced bylocal products.local products.

ThreatsThreats Dumping of low quality products to the market due to absence of a properDumping of low quality products to the market due to absence of a proper

government monitoring policy.government monitoring policy. Multinational firms do not allow local producers to market their products.Multinational firms do not allow local producers to market their products. Lack of consumer trust on local products.Lack of consumer trust on local products. There will be difficulty of finding capital for research and development since itThere will be difficulty of finding capital for research and development since it

takes long time to get results and the possible high risk of failure.takes long time to get results and the possible high risk of failure. The doctors prescribe multinational brand names under the influence of drug The doctors prescribe multinational brand names under the influence of drug

trade propaganda and for the benefits they get.trade propaganda and for the benefits they get. Patents have be obtained by other countries for our products due to our failure Patents have be obtained by other countries for our products due to our failure

of registering them.of registering them.

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