In a significant move to address medicine shortages and promote local production, the Government has approved the procurement of medicines and medical supplies worth over Rs. 44 billion from local manufacturers. This initiative aims to enhance the availability of essential medicines in hospitals and clinics while boosting the pharmaceutical industry.
Cabinet Approval and Procurement Strategy
The decision was based on recommendations from the Standing Procurement Committee, which was appointed by the Cabinet of Ministers. The approval, granted during the Cabinet meeting on 14 October 2024, focuses on a one-year supply of locally manufactured medicines.
To streamline the procurement process, the Health Ministry prepared four lists to ensure the efficient and timely delivery of medicines. These lists include:
- Medicines supplied by the State Pharmaceuticals Corporation (SPC).
- Products from local manufacturers in joint ventures with the SPC.
- Supplies purchased under easy purchase agreements with the Health Ministry.
- Medicines sourced from newly identified local producers currently not under formal agreements.
Breakdown of Procurement Awards
The Government’s investment covers over 330 types of medicines, categorized into four key groups:
1. Medicines Supplied by SPC
- Types of Medicines: 42
- Procurement Value: Rs. 5,398.83 million
- These medicines will be supplied directly by the SPC to ensure uninterrupted availability in hospitals and clinics.
2. Joint Ventures with SPC
- Types of Medicines: 131
- Procurement Value: Rs. 16,611.42 million
- Local producers working in partnership with the SPC will supply these medicines, fostering collaboration and innovation in the pharmaceutical sector.
3. Easy Purchase Agreements
- Types of Medicines: 36
- Procurement Value: Rs. 9,022.10 million
- Local producers engaged in easy purchase agreements with the Health Ministry will contribute these supplies, making procurement more accessible and efficient.
4. Newly Identified Local Producers
- Types of Medicines: 130
- Procurement Value: Rs. 13,374.65 million
- These medicines will be sourced from 24 newly selected local producers, expanding the base of local suppliers and encouraging new entrants in the industry.
Supporting the Local Pharmaceutical Sector
At a press briefing following the Cabinet meeting, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa highlighted the multiple benefits of the initiative.
“This initiative not only addresses medicine shortages across the country but also strengthens the local pharmaceutical industry,” he stated.
The move is expected to:
- Encourage local manufacturers to expand their production capacity.
- Reduce dependency on imported medicines, improving self-reliance in healthcare.
- Attract new investments into the pharmaceutical sector, driving long-term growth.
A Step Towards Self-Reliance
By investing in locally manufactured medicines, the Government aims to foster a more sustainable and resilient healthcare system. This initiative reduces the risk of supply chain disruptions caused by reliance on imports and ensures that essential medicines remain accessible to all Sri Lankans.
Promoting Innovation and Growth
The partnership between the Government and local pharmaceutical manufacturers offers numerous opportunities for innovation and growth. With consistent demand and government support, local producers can invest in research and development, adopt advanced manufacturing technologies, and improve the quality of their products.
Addressing National Healthcare Needs
The Rs. 44 billion investment is not just a financial commitment—it represents a strategic effort to address critical healthcare challenges. With a diverse range of medicines now sourced locally, hospitals and clinics can better serve the needs of patients across the country.
Conclusion
The Government’s decision to allocate Rs. 44 billion for locally manufactured medicines marks a significant milestone in Sri Lanka’s journey toward healthcare self-sufficiency. By supporting local producers and reducing dependency on imports, the initiative strengthens the pharmaceutical industry, encourages innovation, and ensures a steady supply of essential medicines for the nation.
This proactive approach underscores the importance of investing in local capabilities to build a robust and sustainable healthcare system for the future.
